The Standard Formula

Malaysia's insurance market is one of Southeast Asia's most developed, with total gross written premiums for general insurance totaling 23.1 billion Malaysian ringgit — approximately $5.8 billion — in 2024, representing year-on-year growth of 6.9%. In this episode of Skadden's global series on prudential solvency requirements, host Robert Chaplin and colleague Caroline Jaffer examine the country’s distinctive dual financial system, which covers onshore and offshore insurance, as well as Malaysia’s landmark risk-based capital framework that is scheduled to be implemented in January 2027, the Sharia governance framework governing Takaful operators, the new Digital Insurers and Takaful Operators framework and the offshore regime on the island of Labuan. 🗝️ Key Points 🗝️Top takeaways from this episode Dual Regulatory Framework: Malaysia operates a unique dual system in which conventional insurance regulation runs alongside a comprehensive Islamic insurance framework known as Takaful. Each is governed by separate primary legislation: the Financial Services Act 2013 and the Islamic Financial Services Act 2013. Onshore insurance is supervised by Bank Negara Malaysia (BNM), the country’s central bank, while offshore business conducted on the island of Labuan falls under the Labuan Financial Services Authority. RBC2, a Landmark Reform: BNM issued an exposure draft in June 2024 proposing significant changes to its risk-based capital framework (RBC2), with implementation targeted for 1 January 2027. The reform draws on concepts from the Insurance Capital Standard (ICS) issued by the International Association of Insurance Supervisors while preserving features of Malaysia's existing framework. Takaful and Sharia Governance: Every licensed Takaful operator must maintain an internal Sharia committee, with BNM's prior written approval required for all appointments. Crucially, noncompliance with Sharia is a statutory criminal offense under the IFSA — a feature with no real parallel in conventional insurance regulation globally. The DITO Framework: With approximately 90% of the Malaysian population underinsured, the BNM's Digital Insurers and Takaful Operators (DITOs) framework aims to close that protection gap. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in both the U.K. and internationally, Organization: Skadden Words of wisdom: “The BNM, through its Sharia Advisory Council established under the Central Bank of Malaysia Act 2009, holds wide powers to assess, intervene, direct and penalize for breaches. This statute of enforcement architecture has no real parallel to Solvency II or indeed for the most comparable international frameworks, as it is the threshold consideration for any practitioner advisee on the Takaful market entry.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Colombia's total gross written premium (GWP) is projected to reach $8.9 billion this year and grow to over $11.5 billion by 2028, signifying its rise as a significant and expanding insurance market. In this special additional episode of “The Standard Formula,” host Rob Chaplin is joined by colleague Caroline Jaffer explore Colombia's prudential solvency regime, building on their recent episodes focused on Central and Latin America. They examine the regulatory role of the Superintendencia Financiera de Colombia (SFC), Colombia's alignment with international standards through IAIS membership and the country's gradual shift toward a risk-based capital model. Rob and Caroline also discuss progress toward Solvency II adoption, technical reserve requirements and cross-jurisdictional reinsurance rules through the REACOEX registry. 🗝️ Key Points 🗝️Top takeaways from this episode Colombia's Insurance Regulatory Framework: Colombia's insurance sector is regulated by the SFC, which holds wide-ranging powers for licensing, supervision, consumer protection and regulatory enforcement. The Ministry of Finance also retains policymaking authority over the broader insurance sector. Shift Toward Risk-Based Capital: Since 2010, Colombia has been gradually shifting towards a risk-based solvency framework. Insurers now calculate required capital based on asset risks, underwriting risk and other exposures, with the minimum capital required to be comprised of paid-in capital, reserves and retained earnings. Progress Toward Solvency II Adoption: Colombia is working toward a more extensive adoption of Solvency II, encompassing not only quantitative capital requirements but also governance, risk management, reporting and transparency. One challenge has been the availability of data, leading the Colombian government to foster capacity-building within the insurance sector to ensure an ordered transition. Cross-Jurisdictional Reinsurance and the REACOEX: Domestic insurers may cede risk to foreign reinsurers, provided those reinsurers are registered in the REACOEX — the SFC's public registry for foreign insurers and reinsurance intermediaries. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in both the U.K. and internationally, having practised in both the U.K. and the Middle East. Organization: Skadden Words of wisdom: "Colombia has increasingly aligned its supervisory and prudential systems to international standards in recent years. The SFC became a member of the International Association of Insurance Supervisors, or IAS, Multilateral Memorandum of Understanding in 2022. Accordingly, Colombian regulation follows all their guidelines specifically regarding prudential supervision, market conduct, corporate governance and risk management." Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Australia and New Zealand sit at opposite ends of the international solvency spectrum — as Australia is among the largest in the Asia Pacific region, while New Zealand is smaller in scale and undergoing significant evolution to align with international best practices. During this penultimate episode of “The Standard Formula” series on global prudential solvency requirements, host Rob Chaplin and associate Connor Williamson examine the two countries’ markets and regulatory regimes, regulatory structures, capital standards, governance and reporting requirements, and reinsurance frameworks, among other topics. 🗝️ Key Points 🗝️ Top takeaways from this episode Australia's “Twin Peaks” Model: Australia's insurance sector is governed by a "Twin Peaks" system that divides responsibility between the Australian Prudential Regulation Authority (APRA), which oversees prudential standards and financial stability, and the Australian Securities and Investments Commission (ASIC), which handles market conduct and consumer protection. New Zealand's Regulatory Reform: In September 2025, the New Zealand government agreed to recommendations from the Reserve Bank of New Zealand (RBNZ) to reform the Insurance Prudential Supervision Act (IPSA). Changes are expected after a late 2026 election and aim to shift from a relatively light-touch model to a more proactive, intensive, and risk-based approach aligned with international standards. New Zealand's Seismic Risk Capital Standard: New Zealand imposes the highest risk-based capital standard in the world for seismic risk, requiring general insurers to hold sufficient capital or reinsurance to cover liabilities for a 1-in-1,000-year seismic event. Earthquakes and Climate: Both markets respond to natural disaster risks that manifest differently. In New Zealand, for example, earthquakes represent a significant risk and up to 80% of economic losses resulting from earthquakes are insured. In Australia, the most significant natural hazard risk is extreme weather events. Accordingly, between 2020 and 2025, approximately AU$22.5 billion was paid on claims for cyclones, bush fires and floods. 💡 Meet Your Host 💡 Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡 Name: Connor Williamson What he does: Connor has a wide-ranging financial institutions and regulatory practice, with extensive experience advising insurers, asset and wealth managers, banks, payment institutions, credit rating agencies, non-bank lenders and financial sponsors on transactional and stand-alone advisory matters. Organization: Skadden Words of wisdom: “The first point to understand is that New Zealand has its own regulatory regime, and that's actually more different from Australia than you might expect.” Connect: LinkedIn Connect with Skadden ☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

South Korea's insurance industry is estimated to be the seventh-largest globally, with high market concentration: three life insurers hold approximately 50% of the life insurance market while the top four non-life insurers control about 70% of the non-life market. In this episode of Skadden's yearlong podcast series on global insurance regulatory regimes, host Rob Chaplin and colleague Chiara Iorizzo explore South Korea's robust, multi-layered regulatory framework. Tune in for their detailed analysis of the country’s regulatory and prudential regimes and observations about how the country aligns with global insurance standards. 💡 Meet Your Host 💡Name: Rob Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡Name: Chiara Iorizzo What she does: Chiara advises on domestic and cross-border mergers and acquisitions, group restructurings, regulated financings, governance and regulatory matters for private equity sponsors, asset managers, reinsurers, brokers and other financial institutions within the insurance and financial services sector. Organization: Skadden Words of wisdom: “If an insurer's KICS ratio falls below the minimum, the FSC has broad powers to take prompt corrective action. This can include requiring the insurer to raise capital, dispose of assets, close sales offices, merge, or transfer business. The regime is designed to ensure that insurers remain financially sound and can meet their obligations to policyholders.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

On the latest episode of "The Standard Formula," host Rob Chaplin is joined by associates Dev Jain and Richi Kidiata for a comprehensive tour of Africa’s rapidly evolving insurance landscape. The team delves into the regulatory frameworks of South Africa, Morocco, Egypt, Nigeria and Kenya — markets at the forefront of aligning with international best practices and standards such as Solvency II — and breaks down each jurisdiction’s approach to capital and liquidity requirements, risk management and governance, while highlighting recent reforms, local challenges and the growing integration of African insurers into the global financial system. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. Connect: LinkedIn 💡 Featured Guest 💡Name: Richi Kidiata Organization: Skadden Name: Dev Jain Organization: Skadden Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

While Latin America accounts for just 3% of the global insurance market, the region's total written premiums grew at an impressive 11% annually between 2019 and 2024, with projections indicating this growth will continue. In this installment of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleagues Caroline Jaffer and James Pickstock do a deep dive into the insurance regimes in Mexico, Brazil, Chile and Argentina. Tune in as they break down each jurisdiction's regulatory authority, unique prudential requirements and gradual shift toward European or Bermudian-style risk-based systems. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guests 💡Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in both the U.K. and internationally, having practised in both the U.K. and the Middle East. Organization: Skadden Words of wisdom: “On investments, Brazil has strict and detailed rules on what type of assets may be invested by insurers and local reinsurers, with such rules being set by Brazilian finance authorities and reviewed periodically. These same rules impose certain investment limits per class of asset and issuer.” Connect: LinkedIn  Name: James Pickstock What he does: James advises on a wide range of corporate and regulatory matters, including U.K., cross-border and global mergers and acquisitions, group restructurings, reinsurance transactions and Part VII transfers, as well as governance and conduct issues. Organization: Skadden Words of wisdom: “The Chilean insurance market is reasonably open to international reinsurers and foreign investment, with some standard regulatory overlay. For example, foreign reinsurers can operate directly in Chile provided they meet certain conditions — being that they have a risk rating of at least BBB or equivalent, and that they have an appointed representative on the ground.” Connect:  LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Canada has one of the world's most sophisticated and internationally integrated insurance markets, marked by robust capital requirements and an increasing orientation towards ESG- and climate-related considerations. Continuing Skadden’s global tour of prudential solvency regimes, host Rob Chaplin and colleague Chiara Iorizzo examine Canada’s insurance regulation structure, valuation approach, capital quality standards and modernization efforts. 🗝️ Key Points 🗝️ Top takeaways from this episode  Division of Oversight: Canada’s federal Office of the Superintendent of Financial Institutions (OSFI) is responsible for prudential regulation of most insurers. Provincial regulators also play a role, with market conduct and licensing insurers and intermediaries falling under provincial jurisdiction. Life Insurance Capital Adequacy Test (LICAT): LICAT is Canada's risk-based capital framework for life insurers, which establishing rigorous standards set minimum target ratios for core capital at 55% and total capital at 90%, as well as supervisory target ratios for core capital at 70% and total capital at 100%.. International Financial Reporting Standard 17 (IFRS 17): Canadian insurers prepare their financial statements in accordance with Canadian GAAP and life insurance liabilities are valued using the new IFRS 17 valuation approach (often referred to in Canada as an Asset Liability Method, or ALM). This phased out the previously used Canadian Asset Liability Method, or CALM, which was used under IFRS 4 when IFRS 17 came into effect at the start of 2023. IFRS 17 represents a transformative shift in accounting for insurance contracts in Canada, introducing a comprehensive framework that enhances transparency, consistency and comparability. The Future of Canadian Involvency Regulation: Canada is actively modernising its solvency framework. Despite rejecting the International Association of Insurance Supervisors’ Insurance Capital Standard, with the adoption of IFRS OSFI is moving toward a total balance sheet approach for capital adequacy, which will bring Canadian standards closer to Solvency II and other international regimes. The new framework will emphasize economic valuation principles, greater transparency, and more risk-sensitive capital requirements. The goal is to maintain the competitiveness and resilience of the Canadian insurance sector in a global market.  💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Chiara Iorizzo What she does: Chiara advises on domestic and cross-border mergers and acquisitions, group restructurings, regulated financings, governance and regulatory matters for private equity sponsors, asset managers, reinsurers, brokers and other financial institutions within the insurance and financial services sector. Organization: Skadden Words of wisdom: “The adoption of IFRS 17 is particularly significant given the market concentration of large diversified insurers and (Canada’s) robust regulatory environment, which emphasizes prudential oversight and consumer protection. The standard’s implementation is expected to drive greater alignment between Canadian insurers and their global peers.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In this episode of The Standard Formula, host Robert Chaplin and Skadden colleague Theo Charalambous provide a high-level refresher on Solvency II, Solvency UK and relevant recent developments as part of Skadden’s year-long podcast series on global prudential solvency requirements. The hosts detail both regimes and relevant topics, including the Matching Adjustment Accelerator (MAIA), enhanced liquidity reporting requirements, and new exit planning obligations for Solvency UK that represent a shift away from Solvency II toward a U.K.-focused approach. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Theo Charalambous What he does: Theo counsels insurers, brokers and private equity sponsors on mergers and acquisitions, disposals, investments, reorganizations, alternative transaction structures and multijurisdictional regulatory matters. Organization: Skadden Words of wisdom: “In the U.K., the PRA requires that insurers’ investment strategies should be aligned with its investment objectives and asset allocation, the board's risk appetite, risk tolerance limits, investment risk-return objectives, as well as alignment of the investment strategy with its business model.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

India has emerged as the 10th-largest insurance market in the world by total premium volume, yet its insurance penetration level sits around 3%-4%, well below the global average of 7%. In the eighth episode of Skadden's year-long podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Anika Goodfellow explore the country’s evolving insurance regulatory landscape and outline its goal of transforming the sector to allow for companies to more easily conduct business. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Anika Goodfellow What she does: Anika has extensive experience advising reinsurers, brokerages, asset managers and financial sponsors on a wide range of transactions, including U.K., cross-border and global mergers and acquisitions, disposals, investments, carve-outs, consortium deals and group restructurings. Organization: Skadden Words of wisdom: “The insurance sector in India is shifting toward a risk-based capital, or RBC, regime. This is part of IRDA's “Insurance for All by 2047” initiative to bring the Indian insurance industry in line with international standards and to catch up with India's payers in North America and Europe.” Connect:  LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

China's insurance market has emerged as the second-largest in the world and is on pace to become the largest worldwide by the 2030s. In the seventh episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and Skadden colleague Feargal Ryan explore China's regulatory transformation from a centralized state monopoly to a sophisticated risk-based system. They highlight the establishment of the National Financial Regulatory Administration, the implementation of the China Risk-Oriented Solvency System (C-ROSS) and Shanghai’s recent growth as an international reinsurance hub. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name:  Feargal Ryan What he does: Feargal is a counsel in Skadden’s Financial Institutions and Insurance groups. He advises on a wide range of insurance-related transactions, as well as regulatory issues in the insurance sector. Organization: Skadden Words of wisdom: “Despite the delayed start, China's insurance market has grown rapidly and is the second-largest insurance market globally in terms of total premium volume following only the United States. It is predicted to become the largest market globally by the mid-2030s. In 2024, China recorded a total insurance premium income of 5.7 trillion Chinese Yuan, equivalent to approximately US$794 billion, which is an 11.15% year-on-year increase. China is home to approximately 10% of the world's global insurance activities. The Chinese market serves as a unique opportunity for foreign insurers, especially considering the size of its population, demographics, and the rapid economic development throughout recent decades.” Connect:  LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the latest episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Rob Chaplin and colleague Chiara Iorizzo explore regulatory capital in the United States, one of the largest insurance markets in the world. They discuss how the insurance industry is regulated across the country, as well as how the National Association of Insurance Commissioners operates and interacts with state-level regulators. They also review how solvency capital is calculated in the U.S. and how companies licensed in multiple states must adhere to relevant laws in each jurisdiction, among other topics. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Chiara Iorizzo What she does: Chiara is an associate in Skadden's Financial Institutions Group who is admitted to practice in England & Wales and in New York. Organization: Skadden Words of wisdom: “Each insurance company is domiciled in one state, subject to certain exceptions where an insurer can be deemed to be commercially domiciled in a second state. While insurers are primarily regulated by the domiciliary regulator, they're also subject to the laws of each and every state where they're licensed.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

The Middle East insurance market is expected to grow significantly as a hub over the next several years, with predicted growth of almost 29% by 2028. In the fifth episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Caroline Jaffer explore the regulatory landscape in the UAE, Saudi Arabia, Qatar, Bahrain and Oman. During the discussion, Mr. Chaplin and Ms. Jaffer explore the state of the Middle East insurance sector, including “financial free zones,” capital requirements, solvency margins and the growing influence of international standards in the region's evolving insurance markets. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in both the U.K. and internationally, having practised in the U.K. and the Middle East. Organization: Skadden Words of wisdom: “There are more than 50 free zones in the UAE, which have been designed to attract investment into the country into their designated sectors by, for example, permitting 100% foreign ownership.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the fourth episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and associate James Pickstock explore the Cayman Islands' insurance regulatory landscape. As the second-largest jurisdiction for captives and a significant player in reinsurance markets, the Cayman Islands provides insurers with the ability to design a bespoke capital, investment and resourcing model that is right for individual companies’ needs, making it an attractive market for insurers. Rob and James discuss the Cayman Islands’ insurance history, regulatory classifications, solvency capital requirements and investment rules. They also examine how the jurisdiction aligns closer to the U.S. solvency regime as opposed to Solvency II standards. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name:  James Pickstock What he does: Based in London, James is an associate in Skadden’s Financial Institutions Group. Organization: Skadden Words of wisdom:  "A key takeaway is that it is essential for each insurer to assess the suitability of the jurisdiction within the context of their own business and the risks they underwrite." Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the third episode of Skadden's yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Annabel Smethurst discuss Japan's insurance and regulatory landscape. As the world's fourth-largest insurance market, Japan has become increasingly attractive to foreign insurers due to its mature market, aging population and ongoing regulatory reforms. Rob and Annabel explore Japan's regulatory framework, its evolution from the "financial Big Bang" of the 1990s and the flourishing reinsurance sector that has emerged as the country aligns with international standards such as Solvency II and the Insurance Capital Standard (ICS). 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Annabel Smethurst What she does: Annabel advises on insurance transactions and regulatory matters, with particular experience in the restructuring of insurance businesses and Solvency II implementation. Organization: Skadden Words of wisdom: "Japan's insurance market is becoming increasingly attractive to overseas insurers due to ongoing regulatory reforms aimed at improving financial stability and aligning Japan with international standards." Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In the second episode in Skadden’s yearlong podcast series on global prudential solvency requirements, host Robert Chaplin and colleague Abraham Alheyali discuss the regulatory regime in Bermuda, a global center for insurance and reinsurance. More than 30 major firms underwrite from the country, and it is the largest supplier of catastrophe reinsurance to U.S. insurers. Rob and Abraham discuss the Bermuda Monetary Authority’s (BMA’s) regulatory approach toward different types of insurers and reinsurers, the four key concepts in Bermuda’s prudential regime, various requirements for capital holdings and investments, and how the insurance industry’s growth and increasing sophistication will likely lead to future regulatory changes. 🗝️ Key Points 🗝️ Top takeaways from this episode  The History of Insurance in Bermuda: More than 30 major international insurance and reinsurance firms underwrite from Bermuda, making it a global center in the industry, known for its innovative, business-friendly and entrepreneurial approach. Key Concepts: The episode breaks down the Bermuda solvency regime’s four key concepts: the Minimum Margin of Solvency, the Bermuda Solvency Capital Requirement, the Enhanced Capital Requirement and the Target Capital Level. Private Equity Insurers: The Bermudian market has experienced significant involvement from private equity and alternative asset manager-backed (re)insurers. This trend is expected to continue as Bermuda has emerged as a favored jurisdiction for PE-owned insurers due to a combination of regulatory flexibility, strategic location, and a robust financial ecosystem. Regulatory Changes: With the market's growth and increasing sophistication, the episode covers potential regulatory evolution ahead as the BMA adapts to new challenges. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Europe Head, Financial Institutions at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Abraham Alheyali What he does: Abraham is a London-based associate in Skadden’s Financial Institutions Group. He has experience working on a wide variety of matters, including transactions involving private equity sponsors. Organization: Skadden Words of wisdom:  “Along with being highly regarded from a regulatory perspective, Bermuda’s favorable tax regime allows reinsurers to operate with greater capital efficiency. The island’s history of innovation in insurance markets — along with the ease of doing business there — also makes it a popular jurisdiction.” Connect: LinkedIn  Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Host Rob Chaplin and Skadden colleague Caroline Jaffer debut the first episode of a yearlong series on global prudential solvency requirements, which will form the basis of the forthcoming Encyclopaedia of Prudential Solvency publication. In this episode, they discuss the International Association of Insurance Supervisors’ (IAIS’) December 2024 adoption of the Insurance Capital Standard (ICS), which Rob notes is a “watershed moment” in global insurance regulation. Rob and Caroline outline key components of the IAIS and the ICS, as well as detail what supervisory authorities and internationally active insurance groups (IAIGs) can expect next regarding the ICS. 🗝️ Key Points 🗝️ Top takeaways from this episode The IAIS’ Regulatory Standards: The IAIS adopts three tiers of regulatory standards: Insurance Core Principles (ICPs), the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) and policy measures for global systemically important insurers. The Insurance Capital Standard (ICS): Adopted by the IAIS in December 2024, the ICS is a measure of capital adequacy for IAIGs. It is made up of three components:  valuation, capital resources and capital requirements. What’s Next for the ICS?: In 2025, the IAIS will begin developing a detailed ICS assessment methodology, which it will use to determine implementation, with in-depth targeted jurisdictional assessments targeted for 2027. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name:  Caroline Jaffer What she does: Caroline has extensive experience working on insurance matters and liaising with regulators in the U.K. and internationally, having practiced in the U.K. and the Middle East. Title: Caroline is an associate in Skadden’s Financial Institutions Group. Words of wisdom: “When setting out how insurers should value their assets and liabilities, supervisory authorities should adopt a regulatory standard at least as stringent as Market-Adjusted Valuation (or MAV).” Connect:  LinkedIn  Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

As 2024 draws to a close, Rob Chaplin invites colleagues to review a year of change throughout the insurance industry. In keeping with the spirit of a traditional holiday countdown, the team presents 12 topics that spanned the year. For more Skadden insights about Solvency II, click here for their updated guide, The Standard Formula: A Guide to Solvency II. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

In this installment of The Standard Formula’s series on Solvency II, host Robert Chaplin and Chiara Iorizzo unpack the regime’s public reporting element. As Rob explains, public reporting “bolsters transparency and market discipline across the insurance industry.” Rob and Chiara cover requirements of the Solvency and Financial Condition Report (SFCR) and discuss some proposed changes to these reporting requirements. They also explore external audit requirements and review the role of the European Insurance and Occupational Pensions Authority (EIOPA) in information disclosure. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: Chiara Iorizzo What she does: Chiara is an associate in Skadden’s Financial Institutions Group. Organization: Skadden   Words of wisdom: “The purpose of the SFCR is to provide stakeholders, like policyholders and regulators, with a comprehensive overview of the insurer’s solvency and financial condition.” Connect: LinkedIn   Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

Host Robert Chaplin and guest James Pickstock cover the Solvency II supervision framework, which is designed to protect policyholders and promote insurer soundness. They focus on the Regular Supervisory Report (RSR), a quantitative tool that is among four key areas that insurers must disclose to supervisors. Robert and James also look ahead to legislative reform effective at year’s end. Watch for our next episode, which will focus on the Solvency and Financial Condition Report, another key area that must be reported to supervisors. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name: James Pickstock    What he does: Based in London, James is an associate in Skadden’s Financial Institutions Group. Organization: Skadden Words of wisdom: “The U.K. reforms take effect from the 31 December, 2024. Under both the U.K. and EU frameworks, insurers that don’t exceed the new increased thresholds will continue to be able to operate under the Solvency II regime, should they wish to, by applying for a voluntary requirement.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.

When U.K. insurers observe they cannot comply with requirements under Solvency II, there are detailed steps that one must take. Feargal Ryan, European counsel in Skadden’s Financial Institutions Group, and host Rob Chaplin, head of the firm’s Financial Institutions Group in Europe, break down insurers’ obligations. They explain differences between the Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR) and examine the Prudential Regulation Authority’s (PRA’s) requirements. 💡 Meet Your Host 💡Name: Robert Chaplin Title: Partner, Insurance at Skadden Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II.  Connect: LinkedIn   💡 Featured Guest 💡Name:  Feargal Ryan What he does: Feargal advises on a wide range of insurance-related transactions, as well as regulatory issues in the insurance sector. Organization: Skadden Words of wisdom: “The first and most critical step is to initiate a frank and open dialogue with the PRA. Once there is any observation of actual or potential non compliance with the SCR, the insurer should detail all material matters impacting upon the insurer's financial difficulty, as well as any matters that may, in the short, medium, and or long term, impact upon the financial condition of the insurer.” Connect: LinkedIn Connect with Skadden☑️ Follow us on X and LinkedIn. ☑️ Subscribe to The Standard Formula on Apple Podcasts, Spotify, or your favorite podcast app. The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.