A Change of Paradigm for the Insurance Industry

15 Pages Posted: 19 Nov 2015

Multiple version iconThere are 2 versions of this paper

Date Written: November 18, 2015

Abstract

In this paper we review changes in the insurance industry due to new risk-based regulations such as Solvency 2 and SST. The move from corporate management based on cash-flow to risk-based management is described and discussed through its consequences on capital management, economic valuation and the internal model. We discuss the limits and difficulties of Enterprise Risk Management and its effect on the organisation of companies and the role of actuaries in insurance. The risk/return relationship is becoming a central element of the company’s management, slowly supplanting the traditional accounting view.

Keywords: Risk Adjusted Capital; Risk Management; Solvency Regulation; Management; Internal Models

JEL Classification: G22; G18; G38; G31

Suggested Citation

Dacorogna, Michel M., A Change of Paradigm for the Insurance Industry (November 18, 2015). Available at SSRN: https://ssrn.com/abstract=2692525 or http://dx.doi.org/10.2139/ssrn.2692525

Michel M. Dacorogna (Contact Author)

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Switzerland

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