Learnings from Global Capital and Solvency Systems（13页）PPT.pdf

Content
A Global Framework for Insurer Solvency Assessment (2004)
— IAA (International Actuarial Association)
Worldwide solvency system introduction
What components needed for a good capital and solvency system
Considerations for an appropriate capital and solvency system in China
Considerations for setting up a system in China
A Global Framework for Insurer Solvency Assessment
(2004) — IAA (International Actuarial Association) 
n Principle- versus rules-based approach
n Total balance sheet approach
n Degree of protection
n Appropriate time horizon
n Types of risks included
n Appropriate risk measure
n Risk dependencies
n Risk management
n Standardized approaches
n Advanced approaches
Worldwide solvency system introduction
EU Solvency I
n Focus on minimum solvency margin
n Rules-based approaches
n Static/accounting-based model
n Reflecting liability only
n Simple factors-based
n Same credit for same block, no reflect company’s own risk
n Solvency or Insolvency
n Less popular scheme
Not reflecting confident level
Not encouraging risk management
US
Worldwide solvency system introduction
n Focus on risk based capital (RBC)
n Rules-based approaches
n Static/accounting-based model
n Reflecting both asset and liability
n Risk factors-based
n Partial reflect company’s own risk
n 5-level to action: No action level -> Mandatory Control Level
n Cash Flow Testing: dynamic solvency testing
Factors differ by product
C1/C2/C3/C4
Factors derived based on confident level
CTE90 for VA