Capital from an Insurance Company Perspective
3 Pages Posted: 15 Nov 2007
Date Written: October 1998
The author provides a few practical comments on capital adequacy from an insurance company perspective. In doing so, he presents two views on capital adequacy and capital allocation in the insurance industry. The first view is the regulatory perspective, that is, the motivations behind regulatory capital requirements in the insurance industry, the structure of those requirements, and the relationship between regulatory capital amounts and the actual risks facing insurance companies. The second view is an insurance company perspective, in particular, the approach taken by the American International Group to determine adequate capital allocations for its various businesses and for the firm overall.
Keywords: capital regulation
JEL Classification: G2, G3
Suggested Citation: Suggested Citation