Chapter 1: The Evolution of Insurance.
Early Risk Instruments.
Role of Insurance in Economic Growth and Prosperity.
Chapter 2: Insurers' Risks.
Insurable and Uninsurable Events.
Risk Transfer and Mitigation.
Chapter 3: Solvency II Chronology.
Need for Insurance Regulations.
Why Do Insurers Fail?
Causes of Failure.
Initial Solvency Directives.
Process of the Solvency II Project.
Chapter 4: Learning from the Basel Approach.
Regulation in Context of the Credit Crisis.
Evolution of Banking Regulation.
Application to Solvency II: Regulation.
Application to Solvency II: Business Logic.
Lessons from the Credit Crisis.
Chapter 5: The Solvency II Directive in Brief.
What Is Solvency II?
Solvency II Is Principles Based.
Partial and Internal Models.
The Economic Balance Sheet.
Structure of the Directive.
Chapter 6: The Economic Balance Sheet.
Total Balance Sheet Approach.
Quantitative Stipulations of the Level 1 Text.
The Standard Formula.
Non-Life Underwriting Risk Module.
Market Risk Module.
Default Risk Module.
Chapter 7: Internal Models.
Complexity of Implementation.
Definition and Scope of Internal Models.
Internal Models Application.
Tests and Standards.
Chapter 8: People, Process, and Products.
Key to a Successful Solvency II Project.
Chapter 9: Business Benefits.
Regulation Past and Present.
Benefits of an Enterprise Data Management Framework.
Benefits of an Economic Balance Sheet.
Benefits in Perspective.
Benefits beyond Solvency II.
About the Authors.