IDEAS home Printed from https://ideas.repec.org/a/cup/bracjl/v2y1996i02p265-323_00.html
   My bibliography  Save this article

Risk-Based Capital in General Insurance

Author

Listed:
  • Hooker, N.D.
  • Bulmer, J.R.
  • Cooper, S.M.
  • Green, P.A.G.
  • Hinton, P.H.

Abstract

This paper looks at the problems of assessing, for solvency purposes, the capital requirements of a non-life insurer in the context of the United Kingdom. It considers how these capital requirements might vary according to the different risks to which an insurer is subject and how this Risk-Based Capital (RBC) might be measured in practice, using as a case study the RBC formula recently introduced in the United States of America. The paper also discusses the application of RBC concepts to the problem of internal capital allocation, to assist in measuring an insurer's rate of return to shareholders by business unit, as well as the more obvious regulatory application. The advantages and disadvantages of a formula-based approach to capital requirements for solvency purposes are discussed in comparison with possible alternative approaches to insurance supervision.

Suggested Citation

  • Hooker, N.D. & Bulmer, J.R. & Cooper, S.M. & Green, P.A.G. & Hinton, P.H., 1996. "Risk-Based Capital in General Insurance," British Actuarial Journal, Cambridge University Press, vol. 2(2), pages 265-323, June.
    • Handle: RePEc:cup:bracjl:v:2:y:1996:i:02:p:265-323_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1357321700003445/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Savage, Lawrie, 1998. "Re-engineering insurance supervision," Policy Research Working Paper Series 2024, The World Bank.
    2. Kwon W. Jean, 2011. "History of Insurance, Market Development and Regulation in Seven Least Developed Countries in Asia: Afghanistan, Bangladesh, Bhutan, Cambodia, Laos, Myanmar and Nepal," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 5(1), pages 1-41, March.
    3. Kamel Mellahi & Adrian Wilkinson, 2008. "A Study Of The Association Between Downsizing And Innovation Determinants," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 677-698.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:bracjl:v:2:y:1996:i:02:p:265-323_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/baj .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.