Insurance Covered: Matching adjustment reform and what it means for Solvency II firms

Episode 1: The matching adjustment reforms that came into effect on June 30, 2024 represent one of the most significant changes to the regulatory landscape for UK insurers since the original implementation of Solvency II.   For firms seeking investment from insurers, and for insurers themselves managing expanded asset eligibility and new governance requirements, the implications span capital strategy, investment management, and regulatory compliance.  Kate McInerney, partner in A&O Shearman's insurance group, talks to securitization partner Iona Misheva and senior associate Marcus Gwyer about the reforms in detail.  What are the headline changes to matching adjustment eligibility, and what new assets can insurers now hold within the framework? What governance and attestation requirements accompany the expanded regime? And what does the reform mean in practical terms for the firms that seek insurer capital, particularly those in the securitization and infrastructure markets?  Insurance professionals, capital markets lawyers, and investment managers working alongside the insurance sector will leave this episode with a precise understanding of the reform's scope and the strategic questions it places on the table.  Insurance Covered examines the issues, disputes and trends shaping the global insurance market. Our insurance specialists engage expert voices from across the industry to explore coverage questions, claims trends and emerging risks. The series is designed for insurance professionals, risk managers and in-house counsel navigating an increasingly complex landscape.