Description: This article discusses new developments on the regulatory front. Under the new agreement, insurance company management and boards will be required to issue a statement that reflects their judgment about the firm’s viability, including its capital adequacy. The required opinion will have five elements - identifying risks, measuring risks, a risk feedback loop, a risk tolerance statement, and a risk policy.

Description: This session from the 1992 Valuation Actuary Symposium focuses on Risk-Based Capital issues and the important points concerning A.M. Best's view of leverage and capital adequacy in the review process.