This study analyzes resource provisioning with strict reliability demands. It characterizes optimal cost scaling in chance-constrained problems as reliability increases. It reveals limitations of common distributionally robust optimization methods, proposes improvements using marginal distributions or f-divergences, and offers a line search for near-optimal solutions, overcoming data sample limitations.
AI could revolutionize UK sectors, enhancing productivity and decision-making, notably in finance by automating processes and refining decisions like underwriting. However, its rapid evolution raises uncertainties and financial stability risks, including systemic issues from flawed AI models, market instability, and cyber threats. The Financial Policy Committee (FPC) is assessing these risks to ensure safe AI adoption, supporting sustainable growth through vigilant monitoring and regulation.
EIOPA advocates for smarter, harmonized EU regulation and stronger supervision to simplify rules and reduce administrative burdens, boosting European competitiveness. This balanced approach aims to create a thriving Single Market while protecting consumers and ensuring financial stability. EIOPA has already taken steps in this direction and emphasizes that simplification should prioritize EU interests and avoid creating new national burdens.
Selon l’ACPR, seuls la moitié des organismes intègrent les risques de durabilité dans leurs politiques clés. L’intégration est la plus avancée dans la gestion des risques d’investissement, mais reste limitée dans la souscription et le provisionnement. Peu d’ajustements tiennent compte des impacts climatiques, malgré leur effet croissant. L’ACPR encourage une amélioration, notamment via la réassurance et l’atténuation des risques, même au-delà des exigences réglementaires actuelles.
An agent with multiple loss models optimizes risk sharing with a counterparty using a mean-variance criterion adapted for ambiguity. Under a Cramér-Lundberg loss model, the optimal risk sharing contract and wealth process are characterized. The strategy is proven admissible, and the value function verified. The optimal strategy is applied to Spanish auto insurance data with differing models from cross-validation for numerical illustrations.
The insurance industry supports delaying the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) until 2028 while negotiations continue. Insurance Europe emphasizes the need for more time to assess impacts and avoid excessive regulatory burdens. Key recommendations include reducing CSRD reporting requirements, postponing CSDDD deadlines, simplifying EU Taxonomy rules, and removing Sustainability Risk Plans under Solvency II.
Insurance Europe calls on the EU to simplify the Retail Investment Strategy (RIS) to improve consumer access to investment, protection, and advice. Their recommendations include streamlining the "value for money" assessment by allowing supervisors to use benchmarks without requiring peer grouping by insurers and avoiding new reporting. They also advocate for a smoother consumer journey by shortening suitability tests and removing duplicative inducement tests. Finally, they propose reducing information overload by focusing on key disclosures and avoiding overly technical cost details. These simplifications, they argue, will boost investment and EU competitiveness.
The ESAs Spring 2025 update highlights geopolitical tensions and cyber risks as major threats to EU financial stability. Trade disputes, policy shifts, conflicts, and economic fragmentation demand increased vigilance. Financial institutions face uncertainties in international markets, liquidity, and AI's role. Proactive risk management, cyber resilience, and monitoring global linkages are crucial.
Banks’ digital accessibility communication varies, reflecting strategic priorities. ING and Santander proactively integrate it into long-term goals, while Deutsche Bank focuses on compliance, often superficially. Société Générale aspires to improve, but gaps persist between claims and action. Swedbank and Danske Bank offer limited transparency, prioritizing sustainability over accessibility. This fragmentation highlights differing stakeholder pressures and strategic ambitions, suggesting a need for stronger collaboration to embed inclusivity beyond compliance in self-service banking.
Insurance Europe supports simplifying the EU’s Taxonomy Regulation, advocating for reduced reporting burdens. It calls for suspending the insurance underwriting KPI, introducing a 10% materiality filter for the investment KPI, and simplifying reporting templates. The industry backs EU efforts to enhance sustainability while ensuring practical and effective regulatory measures.