Solvency capital requirements for a Romanian non-life insurer under Solvency II and Risk-Based Capital frameworks

Solvency capital requirements for a Romanian non-life insurer under Solvency II and Risk-Based Capital frameworks

Blog Article

The paper provides a theoretical assessment of the Solvency II and Risk Based Capital solvency regimes and a numerical evaluation based on the two important characteristics of the Risk Based Capital framework: accounting principles (book values) and risk parameters Crop Tee calibration (standard deviations for premium and reserve risk sub-module) following the Solvency II standard formula methodology for a Romanian non-life insurance company.The results of the numerical evaluation of two assumptions Cold/Hot Compress reveal a substantial impact in the overestimation/underestimation of the solvency capital requirements.