DYNAMIC HYBRIDS UNDER SOLVENCY II: RISK ANALYSIS AND MODIFICATION POSSIBILITIES

Christian Maier () and Oliver Seger
Additional contact information
Christian Maier: University of Bayreuth, Germany
Oliver Seger: University of Bayreuth, Germany

Eurasian Journal of Social Sciences, 2017, vol. 5, issue 2, 12-17

Abstract: In this study, we investigate the new and standardized European system of supervisory called Solvency II. In essence, asymmetric distribution of information between policyholder and insurer triggered this new regulation which aims at better protecting policyholders. Its three-pillar model is about to challenge both, insurers as well as policyholders. The first pillar includes quantitative aspects, the second pillar contains qualitative aspects and the third pillar comprises market transparency and reporting obligations. Underwriting risks, the default risk of a bank and market risks can be identified for the dynamic hybrid. Solvency II covers all these risks in the first pillar and insurers shall deposit sufficient risk-bearing capital. In our analysis, we first identify the dynamic hybrid specific risks under the Solvency II regime und then develop product modifications to reduce this risk.

Keywords: Dynamic Hybrids; Solvency II; Risk Analysis; Reallocation Process; Solvency Capital Requirement; Collateral; Modification (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://eurasianpublications.com/wp-content/uploads/2021/02/EJSS-5.2.2.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejssjr:v:5:y:2017:i:2:p:12-17

Access Statistics for this article

Eurasian Journal of Social Sciences is currently edited by Emanuele Francia

More articles in Eurasian Journal of Social Sciences from Eurasian Publications
Bibliographic data for series maintained by Esra Barakli ().