​Solvency II: Insurers Eye Physical Equity Replacement With Futures, Structures

Insurance companies in Europe are increasingly switching out of their physical equity holdings and replacing their position with futures, while some are also looking at synthetic structures with volatility target or control mechanisms, for example. The trend has accelerated among insurers as the implementation date for Solvency II draws nearer, which puts those companies on a level playing field in terms of how liabilities are valued and how they are hedged.