Recognition of Reinsurance Under Solvency II
Summary
Most insurance companies currently use risk mitigation techniques as an instrument to stabilize their earnings and reduce capital requirements. Reinsurance is one such technique and, under Solvency II, the effect of risk mitigation is fully recognized for the first time.
Most insurance companies currently use risk mitigation techniques as an instrument to stabilize their earnings and reduce capital requirements. Reinsurance is one such technique and, under Solvency II, the effect of risk mitigation is fully recognized for the first time.