ICFS-Plus: Actuarial Software for the Property and Causality Insurance Industry


How to use ICRFS-Plus™ to fulfill Solvency II requirements

The European Parliament's Solvency II Directive, scheduled to come into effect on 1 January 2016, introduces new regulation for insurance. This aims to establish a consistently improved level of policyholder protection via a three-pillared process. The first pillar contains quantitative requirements for the insurance industry relating to Technical Provisions and the Solvency Capital Requirement. The reserve risk is a substantial contributor to the insurance risk and is addressed by the quantitative requirements.

We demonstrate ways that ICRFS-Plus™ can be used to fulfil the quantitative requirements for non-life reserve risk in particular, in the context of the European Commission's Quantitative Impact Study (2010). This includes a standard formula with undertaking specific parameters and a partial Solvency II Internal Model.

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