Solvency Measures for Insurance Companies : Is There a Room for Improvement?
Over the last few years, there has been a considerable debate in the industry and in the academic community about the accuracy and reliability of risk-based solvency measures in approximating the level of risk retained by insurance and reinsurance...
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| Format: | Other Infrastructure Study |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2009/06/16420817/solvency-measures-insurance-companies-room-improvement http://hdl.handle.net/10986/12831 |
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okr-10986-128312021-04-23T14:03:04Z Solvency Measures for Insurance Companies : Is There a Room for Improvement? Gurenko, Eugene N. Itigin, Alexander ACCOUNTS ACTUARIES ADMINISTRATIVE EXPENSES ASSETS AUDITS CAPITAL COSTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CATASTROPHES COMPENSATION CORRECTIVE ACTION CREDIT RISK DISASTERS DIVERSIFIED PORTFOLIO EARTHQUAKE INSURANCE EQUITY CAPITAL EQUITY INVESTORS FINANCIAL INSTITUTIONS FRAUD INSOLVENCIES INSOLVENCY INSURANCE INSURANCE CLAIMS INSURANCE COMPANIES INSURANCE PENETRATION INSURANCE RISK INSURED LOSSES INSURERS LEVEL OF RISK LIABILITY LIFE INSURANCE MARKET RISK MORTGAGE MORTGAGE INSURERS NATURAL DISASTERS PENSION PORTFOLIO PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO RISK PORTFOLIOS PRIVATE INSURANCE PUBLIC INSURANCE RATE OF RETURN REGULATORY FRAMEWORK REINSURANCE RETURN RISK AVERSION RISK CAPITAL RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK REDUCTION SHAREHOLDERS SOLVENCY SOLVENCY MEASURES SOLVENCY REQUIREMENTS UNDERWRITING Over the last few years, there has been a considerable debate in the industry and in the academic community about the accuracy and reliability of risk-based solvency measures in approximating the level of risk retained by insurance and reinsurance entities. This topic was further reinvigorated by the recent enactment of second solvency requirements by the European Parliament, which should replace the current first solvency regulations in 2012. Despite divergence of opinions about the adequacy of specific risk based measures of required solvency capital, there seems to be a general consensus that in principle, well-designed risk based capital (RBC) or solvency requirements can help achieve an efficient reduction in the expected costs of insolvencies by helping regulators to identify weak insurers and intervene well before capital falls below specified levels. The main objective of this paper is to revisit both issues the accuracy and reliability of most common risk-based measures of insurers' solvency and the practicability of risk-based measures of solvency for corrective regulatory action. The paper also touches upon the role of financial incentives in developing the RBC estimates. 2013-03-21T15:55:02Z 2013-03-21T15:55:02Z 2009-06-26 http://documents.worldbank.org/curated/en/2009/06/16420817/solvency-measures-insurance-companies-room-improvement http://hdl.handle.net/10986/12831 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Other Infrastructure Study Economic & Sector Work |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTS ACTUARIES ADMINISTRATIVE EXPENSES ASSETS AUDITS CAPITAL COSTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CATASTROPHES COMPENSATION CORRECTIVE ACTION CREDIT RISK DISASTERS DIVERSIFIED PORTFOLIO EARTHQUAKE INSURANCE EQUITY CAPITAL EQUITY INVESTORS FINANCIAL INSTITUTIONS FRAUD INSOLVENCIES INSOLVENCY INSURANCE INSURANCE CLAIMS INSURANCE COMPANIES INSURANCE PENETRATION INSURANCE RISK INSURED LOSSES INSURERS LEVEL OF RISK LIABILITY LIFE INSURANCE MARKET RISK MORTGAGE MORTGAGE INSURERS NATURAL DISASTERS PENSION PORTFOLIO PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO RISK PORTFOLIOS PRIVATE INSURANCE PUBLIC INSURANCE RATE OF RETURN REGULATORY FRAMEWORK REINSURANCE RETURN RISK AVERSION RISK CAPITAL RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK REDUCTION SHAREHOLDERS SOLVENCY SOLVENCY MEASURES SOLVENCY REQUIREMENTS UNDERWRITING |
| spellingShingle |
ACCOUNTS ACTUARIES ADMINISTRATIVE EXPENSES ASSETS AUDITS CAPITAL COSTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CATASTROPHES COMPENSATION CORRECTIVE ACTION CREDIT RISK DISASTERS DIVERSIFIED PORTFOLIO EARTHQUAKE INSURANCE EQUITY CAPITAL EQUITY INVESTORS FINANCIAL INSTITUTIONS FRAUD INSOLVENCIES INSOLVENCY INSURANCE INSURANCE CLAIMS INSURANCE COMPANIES INSURANCE PENETRATION INSURANCE RISK INSURED LOSSES INSURERS LEVEL OF RISK LIABILITY LIFE INSURANCE MARKET RISK MORTGAGE MORTGAGE INSURERS NATURAL DISASTERS PENSION PORTFOLIO PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO RISK PORTFOLIOS PRIVATE INSURANCE PUBLIC INSURANCE RATE OF RETURN REGULATORY FRAMEWORK REINSURANCE RETURN RISK AVERSION RISK CAPITAL RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK REDUCTION SHAREHOLDERS SOLVENCY SOLVENCY MEASURES SOLVENCY REQUIREMENTS UNDERWRITING Gurenko, Eugene N. Itigin, Alexander Solvency Measures for Insurance Companies : Is There a Room for Improvement? |
| description |
Over the last few years, there has been
a considerable debate in the industry and in the academic
community about the accuracy and reliability of risk-based
solvency measures in approximating the level of risk
retained by insurance and reinsurance entities. This topic
was further reinvigorated by the recent enactment of second
solvency requirements by the European Parliament, which
should replace the current first solvency regulations in
2012. Despite divergence of opinions about the adequacy of
specific risk based measures of required solvency capital,
there seems to be a general consensus that in principle,
well-designed risk based capital (RBC) or solvency
requirements can help achieve an efficient reduction in the
expected costs of insolvencies by helping regulators to
identify weak insurers and intervene well before capital
falls below specified levels. The main objective of this
paper is to revisit both issues the accuracy and reliability
of most common risk-based measures of insurers'
solvency and the practicability of risk-based measures of
solvency for corrective regulatory action. The paper also
touches upon the role of financial incentives in developing
the RBC estimates. |
| format |
Economic & Sector Work :: Other Infrastructure Study |
| author |
Gurenko, Eugene N. Itigin, Alexander |
| author_facet |
Gurenko, Eugene N. Itigin, Alexander |
| author_sort |
Gurenko, Eugene N. |
| title |
Solvency Measures for Insurance Companies : Is There a Room for Improvement? |
| title_short |
Solvency Measures for Insurance Companies : Is There a Room for Improvement? |
| title_full |
Solvency Measures for Insurance Companies : Is There a Room for Improvement? |
| title_fullStr |
Solvency Measures for Insurance Companies : Is There a Room for Improvement? |
| title_full_unstemmed |
Solvency Measures for Insurance Companies : Is There a Room for Improvement? |
| title_sort |
solvency measures for insurance companies : is there a room for improvement? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2009/06/16420817/solvency-measures-insurance-companies-room-improvement http://hdl.handle.net/10986/12831 |
| _version_ |
1764421231882272768 |