A Change of Paradigm for the Insurance Industry
15 Pages Posted: 19 Nov 2015
There are 2 versions of this paper
A Change of Paradigm for the Insurance Industry
A Change of Paradigm for the Insurance Industry
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: Suggested Citation