On the Measurement of Solvency of Insurance Companies: Recent Developments that will Alter Methods Adopted in Emerging Markets

Solvency-both as an economic requirement in the market and as a regulatory and supervisory tool-is critical to all insurance markets. Current market conditions, coupled with expected institutional changes, will place particular burdens on emerging and developing markets. Institutional solvency, effective risk management within companies, effective supervisory oversight, and the development of market disciplines are all linked. The author proposes that the effective implementation of the emerging regime needs a careful and diligent phased process of capacity-building. The first priorities are identified as a strong supervisor, a basic solvency margin requirement, and the initiation of efforts to gather appropriate data sets. This can be followed by advancing development of more sophisticated solvency regulation, increased use of technical expertise, and increased use of market disciplines as the community and financial markets become more able to exercise such discipline.

Bibliographic Details

Main Author:	Thorburn, Craig
Language:	English en_US
Published:	World Bank, Washington, D.C. 2004-02
Subjects:	SOLVENCY REQUIREMENTS, SOLVENCY SUPERVISION, SOLVENCY CRITERIA, INSURANCE MARKETS, EMERGING MARKETS, INSTITUTIONAL CHANGE, RISK MANAGEMENT, SUPERVISORY REGIME, OVERSIGHT, MARKET DISCIPLINE, CAPACITY BUILDING, DATA GATHERING, REGULATORY ENVIRONMENT, TECHNICAL EXPERTISE, FINANCIAL MARKETS ACCOUNTING, ACCOUNTING PRACTICES, ACCOUNTING STANDARDS, ANNUITY, BALANCE SHEET, BALANCE SHEETS, BANKING SUPERVISION, BOND MARKETS, BONDS, BOOK VALUE, CAPITAL REQUIREMENTS, CASUALTY INSURANCE, CATASTROPHES, CONSOLIDATION, CONTINGENT LIABILITIES, COVERAGE, DEFAULT RISK, DERIVATIVES, DISCLOSURE, EARNED PREMIUM, EQUALIZATION, EQUITY INVESTMENTS, EQUITY RETURNS, EUROPEAN CENTRAL BANK, FINANCIAL CONGLOMERATES, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL PERFORMANCE, FINANCIAL REPORTING, FINANCIAL SECTOR, FINANCIAL STABILITY, GENERAL INSURANCE, INCOME, INCREASED INSURANCE COVERAGE, INDEMNITY, INSURANCE, INSURANCE BROKER, INSURANCE COMPANIES, INSURANCE CONTRACTS, INSURANCE POLICIES, INSURANCE PRODUCTS, INSURANCE REGULATION, INSURANCE RISK, INSURANCE SUPERVISION, INSURANCE SUPERVISORS, INTANGIBLE ASSETS, INTEREST MARGIN, INTEREST RATES, INTERNATIONAL ACCOUNTING STANDARDS, INTERNATIONAL HARMONIZATION, INTERNATIONAL STANDARDS, LAWS, LIABILITY MANAGEMENT, LIBERALIZATION, LIFE INSURERS, LOSS RATIO, NON-LIFE INSURANCE, POLICY RESEARCH, POLICYHOLDERS, PREMIUMS, PRIVATIZATION, PROFITABILITY, REINSURANCE, REINSURANCE COMPANIES, REINSURANCE MARKETS, REINSURERS, RISK MANAGEMENT PROCESS, RISK MEASUREMENT, RISK TRANSFER, SECURITIES, SOLVENCY, SUBSIDIARIES, SUPERVISORY AUTHORITIES, SVERIGES RIKSBANK, TRANSITION ECONOMIES, UNDERWRITING, VALUATION, WORKERS COMPENSATION,
Online Access:	http://documents.worldbank.org/curated/en/2004/02/2953735/measurement-solvency-insurance-companies-recent-developments-alter-methods-adopted-emerging-markets https://hdl.handle.net/10986/14209
Tags:	Add Tag No Tags, Be the first to tag this record!