Monthly Archives: September 2009

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Internal Model Myths

For a long time, many (re)insurance companies have realized the need for risk-based valuations and solvency capital measurement and have started developing internal economic capital models which suit their needs. This is without prompting from regulators and rating agencies. Why? Such models provide a common measurement basis across all risks (e.g. same methodology, time horizon, risk measure, level of confidence, etc.) and are a powerful tool for strategic decision-making, for example in capital allocation and pricing.

Internal Model Myths2009-09-01T12:38:20+00:00

Solvency II: all models all internal…but some

Under Solvency II, (re)insurance companies have the option to elect the Standard Model as defined under Solvency II or apply for approval to use Internal Models. Regulatory authorities have spent a lot of time and attention on the admissibility requirements for granting Internal Model approval.

Solvency II: all models all internal…but some2017-05-10T20:05:29+00:00