Posts Tagged ‘RBC’



September 14th, 2014

Capital Optimization: Using Internal Reinsurance for Group Capital Management

Posted at 1:00 AM ET

markus-muller-124Markus Müller, Global Partners & Strategic Advisory EMEA, Capital Optimization

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Increased capital efficiency remains at the forefront of (re)insurers’ strategies - owing largely to the pending introduction of the Solvency II regime, rating agency capital requirements and the continued pressure around shareholder expectations.

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October 21st, 2013

Increasing Strategic Advisory Needs of Large European Insurers and Reinsurers

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paire_eric_thumbEric Paire, Head of Global Partners & Strategic Development EMEA

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Major European international insurance companies face common challenges, issues and external constraints on their way to profitable growth. How can external strategic advice help through the process?

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June 18th, 2013

Chart: RBC Ratio to BCAR

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In Figure 1, RBC Ratio is defined as the ratio of aggregate Total Adjusted Capital to Authorized Control Level RBC for each of 111 combined insurance groups. Plotted against BCAR, there is clearly a strong correlation between the measures, though the relationship is not perfect.

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April 4th, 2013

What About the “S” in ORSA? Actuaries Raise Their Hands: Part II

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Micah Woolstenhulme, Senior Vice President
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This post is Part II of an earlier post that reviewed a session held at the Casualty Actuarial Society Annual Meeting.  In that session, attendees hypothetically viewed the P&C industry as a single large company. Audience members were shareholders and session panelists adopted various executive and leadership roles in the company. The meeting’s task was to vet an economic capital model before the board of directors, allowing individual shareholders the freedom to openly question the model’s input and results. This model, if properly developed and embedded into the company’s strategic management, would represent a key component of the Own Risk and Solvency Assessment (ORSA) Summary Report that will be required of large companies in the industry as early as 2015. Along the way, the presentation and board discussion were interrupted to poll the audience members on several interesting questions.

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April 3rd, 2013

What About the “S” in ORSA? Actuaries Raise Their Hands: Part I

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Micah Woolstenhulme, Senior Vice President
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At the 2012 Casualty Actuarial Society (CAS) Annual Meeting in Orlando, Florida, the general session, “Economic Capital Modeling for ORSA in the U.S. Property and Casualty (P&C) Industry:  The Stakeholders Convene,” afforded participants a novel opportunity to satisfy their continuing education credits. In that session, attendees hypothetically viewed the P&C industry as a single large company. Audience members were shareholders and session panelists adopted various executive and leadership roles in the company.

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December 7th, 2009

A Survey of Capital Allocation Metrics: Co-xTVaR

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Susan Witcraft, Managing Director, Financial Intelligence Team, Instrat
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Co-xTVaR has almost the opposite advantages and disadvantages of standard deviation. It is calculated as the amount by which each risk is worse than its expectation in those situations in which the totality of risks being modeled exceeds its expectation. Co-xTVaR can be viewed as the amount by which a segment is “over budget” in those scenarios in which the company as a whole is “over budget.” In other words, co-xTVaR looks at the average amount by which each segment exceeds its mean in the scenarios in which the company result exceeds some threshold.

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August 25th, 2009

NAIC Summer Meeting

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Financial Intelligence Team
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Reinsurance Regulatory Modernization Framework

At the National Association of Insurance Commissioners (NAIC) summer meeting, discussions continued regarding the Reinsurance Regulatory Modernization Framework, which would change the reinsurance collateral requirements. There appear to be a number of issues that would delay implementation of this framework including both constitutional and non-constitutional issues.

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April 24th, 2009

Solvency II Passes European Parliament

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The European Parliament approved the proposed Solvency II directive on Wednesday. The EU’s Economic and Financial Affairs Council is expected to adopt the framework by May 5, 2009, with the measure likely taking effect in 2012.

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March 18th, 2009

Capital Management: Quantify Capital Risks

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Gary Venter, Managing Director, Instrat®
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The determination of a target capitalization must occur within the context of risk measurement and analysis. Enterprise Risk Management (ERM) practices seek to bring discipline to the risk and capital management process, with every decision made based on a single risk’s marginal implications to the firm as a whole. This approach will not indicate necessary capital levels, but it does equip insurers and reinsurers to optimize their deployment of cash.

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January 15th, 2009

Financial Catastrophe Drives Regulation in 2008

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Guy Carpenter Business Intelligence Unit
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Governments around the world have moved swiftly and radically to respond to the turmoil in global financial markets. Many are concerned that efforts to create a level playing field through the harmonization of accounting rules, Solvency II, and other international agreements, will be swept away by governments anxious to be seen as prioritizing economic stability in their own countries.

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