Best estimate for Solvency II
Realistic assumptions and appropriate actuarial techniques are essential for calculations of company-specific best estimates for claims. This paper focuses on how bestestimate technical provisions can...
View ArticlePillarOne - Risk management tools
The insurance industry is currently operating in a liberal market characterised by pressure on capital and high business volumes. Developments in data analysis and processing have provided us with a...
View ArticleDiscussions on the Framework Directive proposal for Solvency II and global...
The European Council and European Parliament are continuing their discussions on the Framework Directive proposal for the future supervisory system. The co-decision procedure means that both sides have...
View ArticleImpact of reinsurance on risk capital - A practical example
Solvency II obliges companies to take a risk-adequate view of their operations as a whole. Sample calculations for a specimen company using the standard model and a partial model show that reinsurance...
View ArticleSolvency II for property-casualty insurers (I)
This report is a follow-up to our articles on the reducing effect of reinsurance on the solvency capital requirement.
View ArticleCEIOPS plans first implementing measures for Solvency II
The adoption of the Framework Directive at EU level is awaited with anticipation, as the most important principles will be laid down in it. For as soon as it has been adopted, implementing measures...
View ArticleBRiSMABiometric Risk StochasticModelling Approach
Munich Re has successfully concluded this joint project with a number of European insurance companies and presented the concept at market events. In all cases, the partial model has had an impact, the...
View ArticleReinsurance in the era of Solvency II
The timeframe for implementation of Solvency II is still the subject of lively political discussion. But there will be a profound shift in the way insurers evaluate and handle their entire range of risks.
View ArticlePillarOne Dynamic Reinsurance Analysis: The easy way
PODRA (PillarOne Dynamic Reinsurance Analysis) is a service developed by Munich Re to describe and measure underwriting risk in property and casualty insurance. The method is based on the...
View ArticleFull speed ahead for Solvency II
Now that the Directive has been adopted, CEIOPS can at last concentrate on the implementing measures. CEIOPS in fact published several consultation papers in March of this year.
View ArticleStandard formula or (partial) internal model? Analysis based on the results...
Standard formula or own model? Companies should not just wait to receive guidelines.
View ArticleReinsurance's qualitative contribution to value added within the framework of...
This paper discusses qualitative aspects of reinsurance in the context of Solvency II’s Pillar 2 regime.
View ArticleState Covers under Solvency II
Even if insurance solutions involving state covers (pool arrangements) restrict competition in the insurance market, an insurance market without such covers has now become inconceivable. The future...
View ArticleInternal Models: European supervisors working on the approval process
Under Solvency II, insurers will be able to capture their portfolios more precisely using their own measurement tools and models, and this will generally lead to lower capital requirements. However,...
View ArticleFrom business strategy to limit system (part 1) Introduction to the theory
Limit systems will play an important role under Solvency II. Therefore we introduce the following paper: Part 1 covers the generally abstract terminology and explains clearly how risk strategy, risk...
View ArticleFrom business strategy to limit system (part 2) A case study of a...
Following on from Part 1 of “From business strategy to limit system”, Part 2 uses a case study of an average European property/casualty insurer, LIMIT, to provide an illustration of the theory.
View ArticleWill Solvency II give full recognition to non-EU supervision systems?
The European Commission expects CEIOPS to submit its first proposed implementing measures by the end of August 2010.
View ArticleQIS5: European Commission publishes final technical specifications
QIS5 is expected to be the last study officially carried out by the Commission with the support of CEIOPS that insurers can use to determine their future solvency requirements on a test basis before...
View ArticleHealth Catastrophe Scenarios under Solvency II. A new and important risk is...
This paper provides a description of the methodology employed in the health module and sheds light on the inherent structure of catastrophe scenarios from an actuarial perspective.
View ArticleSolvency II and reinsurer ratings
The fifth quantitative impact study (QIS5) is likely to be the last official test of the current design and calibration of the standard formula across the whole of Europe. From an insurer’s...
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