Bringing Risk into Capital Managementbase metric to use and what level of risk do we care about? For a life insurance company, the major ... impact on how a company performs, so it should be a primary concern. Finally, it makes sound business sense ...
Description: Actuaries and rating agencies increasingly believe that the NAIC's formulaic required capital standard does not adequately address a company's insurance, economic market and credit, reporting and pricing risk structure. Economic capital, based upon a stochastic evaluation of a company's total risk exposures, presents a new approach for accurately gauging a company's exposure to risk. Attendees learn what economic capital is, how it is calculated, what it tells company management about risk exposures and how it can serve as a valuable risk-adjusted measurement tool. From the Record of the Society of Actuaries, Volume 29, No. 1: Washington D.C. Spring Meeting, May 29–30, 2003, Session 24OF.Hide
- Authors: Chiu-Cheng Chang, Alastair G Longley-Cook, Francis Sabatini, Geoffrey Hancock
- Date: May 2003
- Competency: External Forces & Industry Knowledge>Actuarial methods in business operations
- Publication Name: Record of the Society of Actuaries
- Topics: Enterprise Risk Management>Risk measurement - ERM; Finance & Investments>Capital management - Finance & Investments; Finance & Investments>Economic capital