New EU Directive to Revolutionize Insurance Capital Requirements by 2012!
Solvency II is a new EU rule that will change how insurance companies calculate the money they need to have on hand. Reinsurance, a way for insurance companies to reduce risk, is important. The goal of this project is to show how reinsurance affects the money insurance companies need to have. The study found that Solvency II's new rules could cause problems, but there are other ways to make the calculations better.