Diversification Effects in Insurance Groups — A Regulatory Angle to Efficient Solvency Requirements

2007 ◽  
Vol 96 (1) ◽  
pp. 33-53 ◽  
Author(s):  
Patrick Darlap ◽  
Bernhard Mayr
Keyword(s):  
Solvency Requirements

The Problem of Solvency in Life Assurance

1966 ◽  
Vol 92 (2) ◽  
pp. 193-197 ◽  
Author(s):  
Hans Ammeter
Keyword(s):  
Economic Integration ◽  
Lively Discussion ◽  
Life Assurance ◽  
Solvency Requirements

In the train of the economic integration of Europe, a lively discussion has, for some time, been carried on about appropriate criteria of solvency for insurance undertakings in respect of life and non-life assurance. The conflict over the proposals for solvency requirements in non-life assurance still occupies the foreground. Here it is the proposed directive put up for discussion by the E.E.C. authorities which is of particular importance. This directive puts forward quantitative conditions for the solvency reserves of companies carrying on non-life business.

Solvency requirements for pension annuities

2003 ◽  
Vol 2 (2) ◽  
pp. 127-157 ◽  
Author(s):  
ANNAMARIA OLIVIERI ◽  
ERMANNO PITACCO
Keyword(s):  
Capital Allocation ◽  
Pension Plans ◽  
Insurance Companies ◽  
Longevity Risk ◽  
Present Value ◽  
Mortality Trends ◽  
Solvency Requirements ◽  
Life Annuities

This paper deals with solvency requirements for life annuities portfolios and funded pension plans. Particular emphasis is devoted to longevity risk, i.e. the risk arising from uncertainty in future mortality trends. This risk must be faced by insurance companies and pension plans that have guaranteed lifelong payoffs.Solvency is investigated referring to immediate annuities, and hence the so-called decumulation phase is addressed. To assess solvency, assets are compared with the random present value of liabilities. Several requirements are considered, each leading to a required asset level that must be financed both with premiums (or contributions) and capital allocation.

scholarly journals Rate Making and Society's Sense of Fairness

1984 ◽  
Vol 14 (2) ◽  
pp. 151-163 ◽  
Author(s):  
G. W. de Wit ◽  
J. van Eeghen
Keyword(s):  
Risk Factors ◽  
Health Insurance ◽  
The Netherlands ◽  
Life Insurance ◽  
Fire Insurance ◽  
Solvency Requirements ◽  
Definition Of ◽  
Location Type ◽  
Premium Differentiation ◽  
Age And Sex

Actuaries have always been in search of ways to determine premiums which match the risks insured as closely as possible. They do this by differentiating between them on the basis of observable risk factors. In practice, many examples of such risk factors are being used: age and sex for life insurance; location, type of building etc. for fire insurance. Motor insurance is perhaps the most characteristic branch with respect to this phenomenon: in tariffs we find factors like weight, price or cylinder capacity of the car, age of the driver, area of residence, past claims experience (Bonus/Malus), annual mileage etc.Outsiders may not always be very positive about such a refined premium differentiation. The basis of insurance, they say, should be solidarity among insureds; premium differentiation is basically opposed to this. Another statement heard in the field is: “Premium differentiation ultimately results in letting every individual pay his own claims, it is the end of insurance”.Much confusion arises during discussions about this subject, especially between actuaries and non-actuaries. We will therefore first give a mathematical definition of solidarity, (Section 2), followed by a brief description of certain trends in society which might bring insurers to deliberately drop certain risk factors from their tariffs in order to increase solidarity (Section 3). The consequences of doing so are examined and it is shown that increased solvency requirements will in the end prove to be ineffective. A possible solution is a voluntary transfer of premium between companies (Section 4). The situation is illustrated by an example of health insurance in the Netherlands, where proposals to arrive at such transfeis are presently being discussed.

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