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Valuation of non-life technical provisions under Solvency II

ByJeff Courchene, Vincent Robert, Joël van der Vorst, and Gary Wells
31 January 2013
Solvency II introduces a new—and, for many, a fundamentally different—approach to establishing technical provisions for outstanding claims and premiums. The new approach is driven by the need to calculate liabilities on a market-consistent basis. Thus, in the absence of suitable hedge portfolios, the technical provisions on a Solvency II basis are determined as a discounted best estimate augmented by a risk margin.

Vincent Robert

Joël van der Vorst

Amsterdam Insurance and Financial Risk | Tel: 31 6 51396049

Gary Wells

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