A review of Solvency II: Has it met its objectives?

Solvency II is currently one of the most sophisticated insurance regulatory regimes in the world. It is built around the principles of market consistency and embedding strong risk management and governance within insurance companies. For business with long-term guarantees, the original basis produced outcomes that were unacceptable to the member states. The original design was amended through Omnibus II. The working party has looked back at the outcome of the final regulation and comments on how well Solvency II has fared, principally from a UK perspective, relative to its initial goals of improved consumer protection, harmonisation, effective risk management and financial stability. We review Pillar 1’s market consistent valuation (including the risk margin and transitional measures) as well as the capital requirements (including internal models). We look at the impact this has on asset and liability management, pro-cyclicality and product design. We look at Pillars 2 and 3 in respect of the Own Risk and Solvency Assessment, liquidity and disclosure. Finally, we stand back and look at harmonisation and the implications of Brexit. In summary we conclude that Solvency II represents a huge improvement over Solvency I although it has not fully achieved the goals it aspired to. There are acknowledged shortfalls and imperfections where adjustments to Solvency II are likely. There remain other concerns around pro-cyclicality, and the appropriateness of market consistency is still open to criticism. It is hoped that the paper and the discussion that goes with it provide an insight into where Solvency II has taken European Insurance regulation and the directions in which it could evolve.

The Current State of the Satsuma Marketing Effort in Alabama

This article reviews the results of 5 years of marketing research on Alabama satsumas and makes recommendations for future progress. Although there are only 28 ha of satsuma orchards in production in Alabama at this time, there are a number of encouraging developments that suggest considerable potential for expanding the industry such as microsprinkler freeze protection, new early-maturing and cold-tolerant varieties, contract sales through the Farm-to-School Program, and rising demand for premium mandarins. Prospects for the industry marketing effort are considered from the perspectives of analyzing marketing opportunities, identifying market segments, selecting attractive target markets, designing marketing strategies, planning marketing programs, and managing the continuing marketing effort. A number of distinct consumer segments have been identified, including one that prefers fruit that is still slightly green and another that prefers a longer shelf life. A peeled-and-sectioned product also appears to have considerable market potential. Name recognition is still a problem as is insipid flavor from fruit that is marketed beyond its optimal ripeness. Needs for the future are detailed and include the needs of the commodity (freeze protection and expanded acreage), the needs of the market (consistency and quality), the needs of the product (quality standards and consumer awareness), the need for and the needs of a brand (recognition and equity potential), the needs of an organization (cooperation and leadership), and the needs of the industry (processes for building equity, forestalling competition, reducing supply shocks, and attracting investment).