Solvency margins and the underwriting cycle

Document description

Work on the effect of the underwriting cycle and solvency appear to have been minimal in the past. It is clear that from various factors, there is little to link underwriting cycles with solvency, except, perhaps, the first. What this note intends to show is that there is an underwriting cycle of specific form closely linked with the solvency of the Company, and this is effected by competition, and the fact that solvency margins are related to premiums, which in themselves, may be inadequate.