The article explores how to assess risk in insurance, focusing on both long-term and short-term perspectives. By combining analytical and simulation methods, the researchers aim to estimate risk margins for regulatory purposes. They use a model to simulate potential outcomes and calculate the associated risks. The study emphasizes the benefits of a simulation-based approach in predicting risk and determining necessary capital reserves. Ultimately, the findings provide insights into how to manage and account for risks in the insurance industry under different regulatory frameworks.