When it comes to optimising the use of capital under Solvency II, there is a wide and varied tool kit of available options. These options range from both traditional and innovative new reinsurance solutions to the use of derivatives, subordinated debt and other instruments. One area which is often overlooked, though, is board-approved future management actions. These actions can potentially provide companies with highly tailored solutions to address their own specific needs while also being particularly cost-effective.

In this note, we explore some examples of the application of future management actions as well as some of the key issues which need to be considered when using them.