Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics - International and Eddy Vanbeneden, Managing Director Contact Another shortcoming of a single ratio is that it provides no insight into the resilience of an entity's capital position. This became relevant when market volatility spiked in the first quarter of 2016 and companies disclosed how much their Solvency ... Continue Reading »
SCR
Solvency II: Greater Risk-Driven Management: Part I
Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics - International and Eddy Vanbeneden, Managing Director Contact On January 1, 2016, the Solvency II regulatory regime took effect. Some celebrated; others were weary from the months and years of preparation. ... Continue Reading »
Reserving and Capital Setting: The Crystalization of Emerging Risks, Part II
The chart below attempts to illustrate the solvency calculation issue. Suppose the best estimate is 20 and the assessment from modeling is that the 1-in-200-year ultimate loss is 100. If all else stays the same and with the simplifying assumption that the yield curve stays flat, one can say that the sum of the 1-year solvency capital requirements (SCRs) approximated the ... Continue Reading »
Solvency II: An Era of Greater Risk-Driven Management
Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics® - International; and Eddy Vanbeneden, Managing Director Contact On January 1, 2016, the Solvency II regulatory regime took effect. Some celebrated; others were weary from the months and years of preparation. ... Continue Reading »
Solvency II: Greater Risk-Driven Management
Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics - International and Eddy Vanbeneden, Managing Director Contact On January 1, 2016, the Solvency II regulatory regime took effect. Some celebrated; others were weary from the months and years of preparation. ... Continue Reading »
Addressing Own Risk and Solvency Assessment/Enterprise Risk Management and Insurance Capital Standard Globally
In accordance with the objectives of the National Association of Insurance Commissioners (NAIC) and European Insurance and Occupational Pension Authority (EIOPA), Own Risk and Solvency Assessment (ORSA) is "people and risk-centric," primarily employing a principles-based approach, as opposed to a rules-based approach. This means that decisions on matters related to risks are ... Continue Reading »
Reinsurance Versus Subordinate Debt: Which is Best for Solvency Capital?
Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director, GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority Contact Here we review how a holistic approach to managing solvency capital requirements can benefit insurers' bottom line: ... Continue Reading »
Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part III
Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director, GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority Contact What About Volatility? Insurers understand volatility in respect of their insurance and investment risk and reinsurance can play a ... Continue Reading »
Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part II
Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director, GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority Contact Increasing the Permanent Capital Available Sub debt is an additional part of the capital tool kit available to insurers and can often be ... Continue Reading »
Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part I
Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director, GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority Contact In recent months a number of market commentators have opined on the merits of proportional reinsurance versus subordinated debt (sub ... Continue Reading »
