[Framework] Solvency Assessment of Insurance Companies - Part 3 - Solvency Capital

REGULATORS
1. the 'solvency capital' is required for various reasons from the regulatory point of view.

2. To reduce the likelihood of the insurer not meeting liabilities when they fall due

3. To provide a cushion to limit the losses, in the event of insolvency

4. To provide an early warning system for regulatory intervention and early corrective action

5. To promote the confidence of the general public 

[Framework] Solvency Assessment of Insurance Companies - Part 2 - Analyse and Quantify

Covering market risks, operational risks, liquidity risks and analyzing risks and quantifying financial impacts.

[Framework] Solvency Assessment of Insurance Companies - Part 1 - Common Risks

1.  In some countries, the supervisory authorities have an integrated risk classification system for the insurance and banking industries. Each Authority has identified their own set of risks. refer table at bottom of posts.

Reserving - Part 2 - Expected Loss Ratio

EXPECTED LOSS RATIO METHOD
1. Uses expected ultimate loss ratios to project ultimate losses.

2. Expected ULR is based on trends of past data, underwriter's view, industry loss ratio, pricing targeted loss ratio.

3. Insurers often use the expected loss ratio on the amount and quality of data that is available and does not take into account actual paid losses.

4, The lack of sensitivity to changes in reported and paid losses makes it less accurate and less useful.