Assessing the solvency and financial strength of a general insurance company. Report of Solvency Working Party

Document description

A first report was presented to the Bristol Seminar in November 1983 and this led to a paper being presented to a sessional meeting of the Institute in February 1984. The Working Party was then reconstituted with its current membership and work began in earnest on setting up a simulation model of a general insurance company which could be used to explore further the problems of variability in both assets and liabilities and to develop work along similar lines to that carried out in Finland. The first results of this work were presented to the Cheltenham Seminar in October 1985. The comprehensive simulation model has now been completed and formed the basis for papers presented to the International Conference on Insurance Solvency in Philadelphia, U S A in June 1986 and the ASTIN Colloquium in Tel Aviv in September 1986. The attached paper carries the work one stage further, with some modifications and refinements to the model and a more extended treatment of the issues raised in the consideration of solvency and the financial strength of a general insurance company.