Insurers explore new risk metrics in bid to refine economic capital models
European insurers are refining their internal economic capital models as regulators’ efforts to define statutory solvency requirements grind to a standstill. Louie Woodall reports
The vacillation of European Union policy-makers has meant that Solvency II will no longer go live before 2016. But instead of simply marking the new date in their calendars and putting risk management concerns to one side as they wait for the politicians to thrash out a compromise package, insurers are using the time to enhance their understanding of economic capital and improve the models they use to calculate it.
Insurers have more room to manoeuvre when it comes to determining economic
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Capital
Bundesbank’s Buch slams lower capital for insurers in infrastructure
Deputy president says the use of prudential regulations to achieve economic policy objectives is “highly problematic”
Insurers weigh benefits of multi-asset funds
Asset managers promise high returns with low capital charges
Systemic insurers to delay structural reform
Systemically important insurers will stop short of committing to plans
Tail-risk hedging – Improving the return on capital
Sponsored feature: Pimco
Own funds rule will reduce reported solvency ratios, say insurers
Industry says European Commission proposal will have negative side effects
Cuts to securitisation capital charges too small, say experts
But European Commission proposals can stop insurers becoming forced sellers of low-risk securitisations
The economic view
Insurers are using the delays to Solvency II to improve their economic capital models
Insurers embrace innovative hybrid capital structures
Contingent capital bonds are becoming increasingly attractive, writes Louie Woodall. But regulatory reforms mean firms must ensure they have a firm grip on the inner workings of these products
Most read
- Top 10 operational risks for 2024
- Top 10 op risks: third parties stoke cyber risk
- Japanese megabanks shun internal models as FRTB bites