Insurers in Europe are confronting a host of regulatory issues dominated by Solvency II. While 91 percent describe Solvency II as a challenge, insurers in the region are divided in terms of how to approach these new requirements. Nearly half of respondents (49 percent) judge their firms to be taking a very proactive approach to Solvency II requirements, while the rest are delaying efforts until uncertainty around key aspects of the regulation is resolved.

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2013 State Street Insurance Survey
• This survey, sponsored by State Street and conducted by the Economist Intelligence Unit, examines
the current state and future outlook for the global insurance industry
• Fielded during April 2013, the survey encompassed 307 senior insurance executives globally, of
which 116 were based in EMEA
About the Research
1
44%
14%
20%
8%
14%
Life
Health
P&C
Reinsurance
Diversified
31%
19%16%
10%
24%
UK
Netherlands
Germany
Switzerland
Other
EMEA Respondents by Country EMEA Respondents by Industry Sub-Sector

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Key Challenges Facing Insurers in EMEA
Managing
Risk
Improving the assessment
and pricing of risks
Balancing liquidity
and reserve adequacy
Regulation
and
Compliance
Adapting to evolving
insurance regulations
Ensuring transparency of
business policies and processes
Driving
Innovation
Bringing new, innovative
products to market quickly
Adapting distribution to
changing demographics
Finding New
Sources of
Value
Effectively allocating capital to the
most business-critical priorities
Investing in more
complex investment types
Optimizing
Business
Strategy
Converting fixed costs
to variable costs
Using data more effectively
across our company
55%
53%
47%
49%
47%
57%
55%
41%
58%
53%
33%
16%
41%
26%
43%
26%
19%
27%
24%
24%
Minor challenge Major challengeSource: 2013 State Street Insurance Survey,
conducted by The Economist Intelligence Unit 2
Adapting to regulation and quickly launching innovative products
are the leading challenges for EMEA-based insurers

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60%
69%
58%
53%
61%
31%
19%
28%
27%
19%
9%
12%
14%
20%
20%
40% 20% 0% 20% 40% 60% 80% 100%
European Regulatory Environment
Top Five Regulatory Concerns for Insurers Operating in Europe
Source: 2013 State Street Insurance Survey, conducted by The Economist Intelligence Unit CORP-0759 3
• Regulatory reform in the wake of the
global financial crisis continues to
transform the insurance industry
• Solvency II is a huge concern for
insurers operating in Europe: 91 percent
describe it as a challenge, with nearly
one- third (31 percent) seeing it as a
“major” challenge
• Nearly half of respondents (49 percent)
judge their firms to be taking a very
proactive approach to Solvency II
requirements, while the rest are delaying
efforts until uncertainty around key
aspects of the regulation is resolved
European insurers are confronting a host of regulatory issues, dominated by Solvency II
Preparing for Solvency II
Complying with FATCA
Keeping pace with
evolving EU and national
tax legislation
Adapting to regulations on
unbundling banking and
insurance products
Preparing for PRIPs
Not a challenge Minor challenge Major challenge