Consideration of Non-Proportional Reinsurance Under the Solvency II Standard Formula
Summary
Solvency II aims to appropriately recognize all risk categories an insurance company faces and all the risk mitigation techniques that insurers use to reduce exposure and thereby lower their risk capital.
Solvency II aims to appropriately recognize all risk categories an insurance company faces and all the risk mitigation techniques that insurers use to reduce exposure and thereby lower their risk capital. This marks a departure from Solvency I and its limited recognition of risk mitigation techniques.