In their 2001 Journal of Risk and Insurance article, Stewart C. Myers and James A.Read, Jr., propose to use a specific capital allocation method for pricing insurancecontracts. We show that in their model framework no capital allocation to lines ofbusiness is needed for pricing insurance...

This contribution discusses a number of ideas for using a shareholder value approach to the problems of risk-adjusted performance measurement and the issue of capital allocation. We demonstrate that, if shareholder value is to be consistently maximised, then not only the total amount of equity...

In this paper, we first discuss the characteristics and major benefits of the Swissrisk-based capital standards for insurance companies (Swiss Solvency Test), introduced in 2006. As the insurance industry is one of the largest institutional investors in Switzerland, changes to its asset and...

The aim of this paper is to develop an alternative approach for assessing an insurer’s solvency as a proposal for a standard model for Solvency II. Instead ofderiving minimum capital requirements—as it is done in solvency regulation—our model provides company-specific minimum standards for...

Die Dynamische Finanzanalyse (DFA) hat sich in den vergangenen Jahren zu einemwichtigen Instrument zur Analyse der Finanzlage eines Versicherungsunternehmens entwickelt.Trotz der zunehmenden Verbreitung der DFA in der Praxis und zahlreicher Abhandlungenin der wissenschaftlichen Literatur gibt es...

Dynamic financial analysis (DFA) has become an important tool in analyzing thefinancial situation of insurance companies. Constant development and documentationof DFA tools has occurred during the last years. However, several questionsconcerning the implementation of DFA systems have not been...

As early as the 1970s, European Union (EU) member countries implemented rulesto coordinate insurance markets and regulation. However, with the more recentmovement toward a general single EU market, financial services regulation hastaken on new meaning and priority. Solvency I regulations went...

Die aktuellen EU-Solvabilitätsvorschriften sind seit ihrer Einführung in den Jahren1973 (Nichtlebensversicherungen) und 1979 (Lebensversicherungsunternehmen)Gegenstand massiver Kritik.1 Ein zentraler Kritikpunkt resultiert aus derTatsache, dass sich die EU-Solvabilitätsregeln lediglich am...

Die Mindesteigenkapitalausstattung von Banken und Versicherungen unterliegteiner weitreichenden gesetzlichen Regulierung.1 Als Begründung für Eingriffedes Staates in die unternehmerische Freiheit wird im Versicherungsbereich häufigauf eine spezielle Gläubigerstellung des Versicherungsnehmers...