The reforms will force banks to examine capital use throughout their whole operation and maybe revise their pricing and product offerings as a result. As a result, the new framework will impact company strategy and business strategies. The BCBS anticipates that this will result in a capital reallocation within the system. Larger banks will need to concentrate on capital floors, but smaller banks will need to carefully assess what infrastructure and technology changes are required to handle the greater amount and granularity of data required by the most advanced standardised techniques.

We intend to raise the awareness on how Data Science can be leveraged on in the context of insurance pricing and how to go from theory to practice, from scripting to deploying your model. This article is the first of a series of four articles on this topic. ​Understanding the risk factors and their impacts on the pricing is essential in risk assessment, particularly in a competitive market. In this process, generalised linear models combined with regularisation techniques can be useful. Moreover, GLMs help to understand what impacts your policy's pure premium so the product managers and brokers can effortlessly understand how the model works.

On January 24th 2022, the EBA published its final draft implementing technical standards on Pillar 3 disclosures for Environmental, Social and Governance (ESG) risks. This article aims to summarise, contextualise, and critically assess the disclosures' essential aspects. It situates the disclosures within the larger spectrum of comparable disclosures of environmentally sustainable economic activities presented by other governing bodies in the EU. It discusses the different templates included and the timeline provided by the EBA for completing each set of disclosures. It offers preliminary methodological recommendations on key aspects of the disclosures based on Finalyse's internal requirements assessment. Eventually, it provides some general concluding remarks on Banks' challenges related to the disclosure of ESG risks.

Effective January 1st, 2019, the EU securitisation market has undergone a substantial overhaul in terms of the overall regulatory framework that governs the securitisation activities of the different players in the Member States. The overhaul represents a major milestone in the EU’s Capital Markets Union (CMU) agenda and includes several interrelated and complementary regulations. This article provides a general overview of the EU Securitisation Framework, highlighting its most key components and considerations from the perspective of banks and (re)insurers subject to the new requirements.

We welcome the proposal by the EU to create a harmonised resolution regime via an Insurers Recovery and Resolution Directive. This will end the fragmented landscape of national resolution legislation and create a level playing field amongst EU member states. The IRRD will hopefully improve policy holder’s and claimant’s protection and reduce the amount of insurance companies bailed out by taxpayers. However, the Directive will create an additional administrative burden for insurers, so insurers will need to prepare accordingly for this Directive's extra work.