{
  "docId": "019dd923-5ca1-7489-b639-8827c17e5ed9",
  "docSlug": "41a33bc1bcbb8d0e",
  "documentTitle": "Sustainability Risk Under Solvency II",
  "authorId": "OliverWyman",
  "authorName": "Oliver Wyman",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 1.4,
  "pageNumber": 34,
  "pageCount": 40,
  "prevPage": 33,
  "nextPage": 35,
  "slideType": "scenario_analysis",
  "function": "quantify_impact",
  "density": "dense",
  "nDataPoints": 18,
  "notes": "The slide uses a matrix-like structure to compare two types of insurers across three scenarios, showing the impact on Own Funds (OF) and Solvency Capital Requirement (SCR).",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "other"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b639-8827c17e5ed9/34",
  "deckHref": "/decks/019dd923-5ca1-7489-b639-8827c17e5ed9",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b639-8827c17e5ed9.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b639-8827c17e5ed9#slide-34",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The risk mitigation observed for the more ESG-tilted portfolio is quite substantial, particularly in the more adverse scenario.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-d9ef-7323-a2e6-75bb1cc12f08",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.7,
        "w": 0.48,
        "x": 0.05,
        "y": 0.2
      },
      "kind": "chart",
      "text": "Matrix of Solvency II ratios for Standard vs ESG-oriented insurers across Baseline, RefPol-500, and StrPol-450 scenarios.",
      "attrs": null,
      "subkind": "table",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d52c889c-9042-48cd-b9f4-9ba235de3e78",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.4,
        "x": 0.55,
        "y": 0.2
      },
      "kind": "list",
      "text": "Methodology: Equity impact is straightforward from the portfolio composition; Spreads are updated using downgrade probabilities; Solvency II ratios calculated on stressed balance sheet.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "45b594f2-8a40-4c90-95dd-a77dc0fdcd7a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.4,
        "x": 0.55,
        "y": 0.45
      },
      "kind": "list",
      "text": "Assessment of the SCR shocks: European risk factors are relevant drivers; RefPol-500 impacts are limited; StrPol-450 may weaken competitiveness of industrial-heavy European markets.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6e56e6c2-590e-48bd-b2f1-b6555bb6fec6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.4,
        "x": 0.55,
        "y": 0.75
      },
      "kind": "list",
      "text": "ESG-oriented life insurer: Risk mitigation is substantial in adverse scenarios; RefPol-scenario impact is almost negligible.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9e74f391-c83d-4ffb-9dbd-0e1cd44e95c8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Solvency II ratio: 128%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-d9ef-7323-a2e6-79013adac1bc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.95,
        "x": 0.03,
        "y": 0.05
      },
      "kind": "title",
      "text": "The impact on the Solvency II ratio of the sample life insurer varies from very moderate to quite sizeable",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fd6a67e0-d09e-49d2-89c7-f0144f60bc58",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "Solvency II ratio",
      "numberRaw": "128%",
      "numberKind": "percent",
      "actionTitle": "THE IMPACT ON THE SOLVENCY II RATIO OF THE SAMPLE LIFE INSURER VARIES FROM VERY MODERATE TO QUITE SIZEABLE",
      "calloutText": "The risk mitigation observed for the more ESG-tilted portfolio is quite substantial, particularly in the more adverse scenario.",
      "numberScale": null,
      "numberValue": 128,
      "metricFamily": "rate_catchall",
      "numberCurrency": null
    }
  ],
  "tools": [
    {
      "name": "2x2 matrix",
      "slug": "matrix-2x2",
      "agent": null,
      "layer": "slide",
      "matchId": "910d9d02-aa3f-4434-a218-a9d7f535ab22",
      "evidence": "Matrix of Solvency II ratios for Standard vs ESG-oriented insurers across Baseline, RefPol-500, and StrPol-450 scenarios.",
      "confidence": 0.7
    }
  ],
  "frameworks": [
    {
      "name": "scenario_analysis",
      "slug": null,
      "matchId": "6e1ebb1a-397e-492a-9132-ba47b953f3af",
      "evidence": "Comparison of outcomes across different policy scenarios (Baseline, RefPol-500, StrPol-450).",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 27,
      "beatId": "259bc558-b6c4-46ee-9369-b84c0d9a1088",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Impact & Next Steps",
      "beatSlug": "consultants-gambit-impact-next-steps",
      "evidence": "The deck concludes with key takeaways and implications for insurers, highlighting the importance of anticipating regulatory requirements for Pillar II integration of sustainability risk.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 34,
      "from": 14,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "b4206bc7-4536-421f-ad2e-0c9f3509f8df",
      "evidence": "The deck highlights the potential impacts of climate-related risks on Solvency II ratios, emphasizing the importance of proactive risk management.",
      "position": 0,
      "objective": "What are the potential costs of inaction on sustainability risk?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}