Cookies on the PFS website

By using and browsing the PFS website, you consent to cookies being used in accordance with our policy. If you do not consent, you are always free to disable cookies if your browser permits, although doing so may interfere with your use of some of our sites or services. Find out more »

Personal Finance Society
Recently added to my basket
Sorry but there was an error adding this to your basket. Please try adding it again

Internal models and Solvency II :

Subtitle: from regulation to implementation
Publication date: 2014
Author(s): Cadoni, Paolo (ed. by)


"Insurance companies face a choice between a standard formula and an internal model when calculating their Solvency Capital Requirement for Solvency II. Increasingly, many companies favour internal models as they are more risk sensitive, capture individual risk profiles and reduce capital requirements for Solvency II.

"However, internal models have to be approved by supervisory bodies. As a result, insurers need to demonstrate that their internal model meets the use test, statistical quality standards, calibrations standards, validation standards and documentation standards. It is absolutely critical that they satisfy all necessary requirements." [Publisher's description, from back page].