Solvency II Mandatory Implementation and Analysts’ Forecast Properties
Analyzing EEA insurers from 2012 to 2021 using a difference‑in‑differences approach, this study reveals improvements in analysts' forecasts post‑Solvency II implementation. Although no change in forecast bias is observed, there is a reduction in absolute earnings forecast errors and forecast dispersion, highlighting the positive impact of Solvency II disclosures on reporting accuracy. The findings contribute to insurance literature and inform regulatory authorities.