Realisable group diversification effects

This paper proposes a new bottom-up approach for realising diversification benefits using some predetermined capital and risk transfer instruments, taking counter-party default risk into account

The impact of capital mobility restrictions on the acknowledged diversification benefit of the internal model of an insurance group, or any financial conglomerate, is an important topic in the Solvency II discussion, see for example Section 6 in the recent CEIOPS document (2007). It is generally accepted that for diversification to work at a group level, capital needs to flow freely between business units. Regulators, rating agencies and local companies management may constrain this fungibility

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here