Willem Jan Willemse
Risk based solvency norms and their validity
Abstract of the presentation:
In this article we investigate the resulting empirical situation of accepting a risk based solvency model as a legally valid method to determine minimum required solvency margins. In our investigation we apply the positive-normative distinction to probability based statements. With this distinction in mind, we argue that empirical validity cannot be defined as the conformity to the desired situation of a risk-based solvency norm. Instead, it can only be defined as the orientation of action towards that norm. We conclude that the establishment of a solvency norm primarily orients towards the equitableness of risk of all insurance undertakings within the jurisdiction.
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Information: Adam Booij: Adam.Booij@uva.nl