Regulation was a main focus at the recently concluded Global ABS 2011 conference held in Brussels in mid June. One of the issues was Solvency II, the proposed new European regulatory regime that, according to a report by Moody's Investors Service, is probably going to increase regulatory capital requirements for both European Union and European Economic Area insurers and reinsurers when it is implemented in 2013.

David Flandro, head of global business intelligence at Guy Carpenter, said that Solvency II is a pan-European regulation that hopefully will lead to a more efficient market where capital transfer will be easier, at least in theory. He explained that whenever there is consistent regulation, the market has a better picture of what capital changes look like.

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