METHODS FOR ASSESSING THE TECHNICAL RESERVES AND THE RESERVES RISK OF INSURANCE COMPANIES

Authors

Keywords
solvency 2, technical reserves, provisions for claims outstanding, solvency capital requirements

Summary
The object of this study is general insurance companies. The study focuses on methods for assessing the outstanding claims reserves and how they assess the risk of outstanding claims reserves insufficiency. The goal of the project is to review and systematize the scientific literature regarding the developed methods for assessing technical reserves. The study argues that the stochastic methods allow for not only predicting the expected outstanding claims but also optimizing this assessment and deriving the reserves’ distribution. As a result, the study proposes a methodology for assessing the risk of insufficient reserves for outstanding claims in accordance with the requirements of the Solvency 2 regime.

JEL: G22, C53
Pages: 30
Price: 3 Points

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