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FSA proposals to ease Icas modelling burden raise questions over inclusion of Solvency II risk margin

Suggestions that regulator is already beginning to apply Solvency II assumptions to capital calculations

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Financial Services Authority (FSA) proposals to allow firms to use their Solvency II internal models to meet current regulatory requirements are unclear and may lead to insurers having to hold more capital, actuaries warn.

To relieve the burden on insurers from running multiple models in the run-up to Solvency II implementation, Julian Adams, director of insurance at the FSA, said in a speech this

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