Solvency II boosts pay of risk specialists

THE CITY is expecting a boom in hiring risk experts due to regulation, in particular the impact of Solvency II, according to a survey by executive search firm Kinsey Allen and the Institute of Risk Management.

Solvency II, which imposes capital requirements on insurers similar to Basel III for banks, is expected to increase the going rate for risk specialists by 85 per cent of the risk professionals surveyed, while 60 per cent have already seen their pay rise over the last year.

Two thirds expect this trend to continue, with the average expected pay rise between ten and 25 per cent.

Respondents also said they spent an average of half their day dealing with the impact of Solvency II, despite 46 per cent thinking that the regulations will not achieve their goal of de-risking the insurance sector.

Kinsey Allen’s Loraine Silvester said: “Risk professionals with Solvency II or financial risk or modelling experience are in hot demand as the big players look to broaden their risk teams to adapt in time.”