Solvency Assessment for Insurance Groups in the United States and Europe : a Comparison of Regulatory Frameworks
Journal
Geneva Papers on Risk and Insurance - Issues and Practice
ISSN
1018-5895
ISSN-Digital
1468-0440
Type
journal article
Date Issued
2013-04
Author(s)
Abstract
As a reaction to the increasing trend of insurers forming and participating in financial conglomerates and insurance groups, insurance supervisory authorities are currently developing group-wide solvency regulations. The International Association of Insurance Supervisors (IAIS) recently published an issues paper that discusses the challenges to group supervision and defines criteria for a thorough group solvency framework. Based on these criteria, this article provides an overview and comparison of three important approaches - the U.S. solo plus approach of the National Association of Insurance Commissioners, Switzerland's group structure model, and the Solvency II proposal on group solvency assessment. The analysis reveals various deficits within the group regulation of the United States implying the need for future regulatory work. By contrast, the performance of the European frameworks with regard to the IAIS criteria is good. In particular, the Swiss framework can be seen as a prime example of an innovative and solid group solvency assessment.
Language
English
Keywords
group supervision
insurance group
regulation
risk-based capital
Solvency II
Swiss Solvency test
HSG Classification
contribution to scientific community
HSG Profile Area
LS - Business Enterprise - Law, Innovation and Risk
Refereed
Yes
Publisher
Palgrave Macmillan Ltd.
Publisher place
Hampshire UK
Volume
38
Number
02
Start page
308
End page
331
Pages
24
Subject(s)
Division(s)
Eprints ID
217649
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Solvency Assessment for Insurance Groups in the United States and Europe a Comparison of Regulatory Frameworks.pdf
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196.56 KB
Format
Adobe PDF
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