The Solvency II Experts News

Validation is a fundamental requirement for institutions willing to qualify for an internal model approach to determine regulatory capital requirements. It requires institutions to demonstrate that they have in place a rigorous process by which they can establish whether their internal model framework is sound or whether improvements are needed. Different and distinct, this should not be confused with the process that supervisors undertake when approving a model for use. This paper written by Paolo Cardoni, Technical Specialist in the Solvency II project at the FSA (united Kingdom) is intended to provide insight into how regulators might view the validation standards for internal models and clarify expectations as to how the Solvency II framework for insurance and reinsurance undertakings might approach this. It will show that a correct application of the validation process contributes to reducing the misalignment of the interests of the market and of the regulator.

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On 22 April 2009 the European Parliament voted to adopt the Solvency II Framework Directive. No additional changes were proposed and the Directive is likely to be approved by the Council of the Europe...

The EU has agreed the text of its Solvency II Framework Directive. The Directive still needs to complete the legislative process, but this will almost certainly happen before elections for the Europea...