Abstract
Since January 2016, Solvency II has been integrated as the regulatory framework for the insurance industry with the objective of harmonising European Union (EU) insurance regulation. This framework has fundamentally reformed EU insurance supervisory law and bears little resemblance to its predecessor, Solvency I. In addition, the Solvency II regulations particularly value the functionality of companies’ governance and risk management systems in order to guarantee an effective and efficient control of the companies’ risks.
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Notes
- 1.
Approach used to accelerate the development of EU-wide financial legislation.
- 2.
The risk neutral probability measure equals to the so-called equivalent martingale measure with higher probabilities for lower and lower probabilities for higher values of an asset (in contrast to the real world probability measure). In case of a liability, higher probabilities correspond to higher and lower probabilities to lower values.
- 3.
The information provided in this section is to be considered additional because all further chapters base on a data model for a single non-life entity.
- 4.
The information provided in this section may also to be considered additional, because the subsequent chapters will only deal with each Solvency II pillar and its specific requirements in more detail.
- 5.
If there is a deviation from these assumptions in a particular section, it will be indicated there.
- 6.
The gross earned premium excluding the XoL premium can be interpreted as the gross premium covering the regular claims.
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Heep-Altiner, M. et al. (2018). Introduction. In: Heep-Altiner, M., Mullins, M., Rohlfs, T. (eds) Solvency II in the Insurance Industry. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-77060-4_1
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