Basel III and Solvency III to Revolutionize Risk Management for Banks and Insurers
The article discusses how Basel III for banks and planned Solvency III for insurers aim to improve solvency regulation. By considering market developments, Basel III reduces banks' risk-taking and increases solvency. However, Solvency III may lead to insurers taking less risk and being more solvent. The uniformity of regulations for banks and insurers may not be appropriate due to differences in risk factors.