Insurers explore new risk metrics in bid to refine economic capital models

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 capita