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Hybrid debt market crimped by Solvency II uncertainties

Hybrid debt market crimped by Solvency II uncertainties

Insurers sold four times as much hybrid debt last year as in 2010, and this year has already seen three sizeable deals. But issues of hybrid debt remain constrained by uncertainty over the Solvency II tier 1 capital definitions, as Sarfraz Thind explains

Using least squares Monte Carlo for Solvency II proxy modelling

A nested stochastic approach can prove difficult for many European life insurers implementing a Solvency II internal model, and some proxy modelling techniques such as replicating portfolios and curve-fitting have drawbacks. Mario Hörig and Michael Leitschkis describe an alternative approach that is growing in popularity: Least Squares Monte Carlo (LSMC)

Certainty, proportionality, common sense: what the industry craves from regulators in 2012

Certainty, proportionality, common sense: what the industry craves from regulators in 2012

Leading CROs and consultants give their views on how regulators and politicians may handle outstanding Solvency II implementation issues this year; on business strategy in response to this; and on the outlook for natural catastrophes. Here is a compilation of responses to the questions InsuranceERM asked experts just before Christmas

Insurers embrace curve-fitting for SCR calculations

Aviva, Legal & General and Prudential are among firms that have adopted this approach, but it brings challenges as well as benefits, as these excerpts from a paper released by risk solutions' provider Algorithmics describe

Solvency II shows the perils of not focusing on technical details

Solvency II shows the perils of not focusing on technical details

John Hibbert suggests that there are parallels between the way the Euro-zone debt crisis and Solvency II are being handled by Brussels

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