Subject
Solvency II > cancellation of war risk insurance contracts
Quote from Video
A complimentary explanation for the sudden mass cancellation lies in an underappreciated regulatory dynamic. Solveny 2... these rules mandate that insurers and reinsurers must at all times hold sufficient capital... internal risk models immediately recalculated the probability of a catastrophic claims upward. This produced an instantaneous increase in the solveny capital requirement.
“A complimentary explanation for the sudden mass cancellation lies in an underappreciated regulatory dynamic. Solveny 2... these rules mandate that insurers and reinsurers must at all times hold sufficient capital... internal risk models immediately recalculated the probability of a catastrophic claims upward. This produced an instantaneous increase in the solveny capital requirement.”