Internal models
PRA wrestles with early-warning indicators calibration
Calibration for general insurers and with-profits funds frustrates regulator's progress
Avoid one-size-fits-all capital approach, says Osfi’s Zelmer
Regulators have increasingly been pushing for less reliance on bank internal models, but Osfi’s deputy superintendent of the regulation sector, Mark Zelmer, thinks internal models have a place
Insurers upgrade management actions models
The missing piece
The economic view
Insurers are using the delays to Solvency II to improve their economic capital models
Insurers explore new risk metrics in bid to refine economic capital models
European insurers are refining their internal economic capital models as regulators’ efforts to define statutory solvency requirements grind to a standstill. Louie Woodall reports
Conditional approval of Solvency II internal models should be allowed, urges PRA official
Insurers' efforts to develop internal models should be recognised by supervisors
Insurers developing internal model risk calibrations for non-standard credit assets
Underlines growing strategic importance of infrastructure bonds and MBS, finds survey
Early-warning indicators needed to address failings in Solvency II - PRA chief
Effective and prudent solution needed on Solvency II matching adjustment, says Bailey
PRA reserves right to review internal models after Icas+ approval
Entry requirments for transitional regime will be high, says PRA official
Fears volatile model warning indicators could lead to unjustified action
UK regulator urged to reconsider proposed early-warning indicators to reflect better changes in economic conditions and not penalise insurers’ de-risking strategies
Eiopa developing early-warning indicators to monitor internal models
Indicators needed to identify situations where a firm's model no longer meets Solvency II calibrations, saya Eiopa
UK regulator right to retain flexibility to force changes on internal models
Head of the PRA plans to use early warning indicators in supervisory work, notwithstanding the risk of EU challenge
Lloyd’s insurers challenged by internal model change policies
Questions on parameterisation remain unanswered by European rule-makers
Profile: FSA's Jo Paisley, on data, modelling and the Bank of England
The Financial Services Authority has a Bank of England veteran heading its risk division as it is subsumed by the central bank. Jo Paisley tells Laurie Carver how the two disparate cultures can be reconciled – particularly when it comes to data
Bank groups revise trading book counter-proposals
Industry associations seek to put banks in control of diversification treatment - but propose regulatory safeguards
Insurers deal with delays to Solvency II rules
Out of focus
Solvency II capital tests not part of augmented Icas regime, FSA confirms
Insurers welcome Icas+, although uncertainty remains over future requirements
Solvency II delays limiting internal model growth, head of op risk warns
Reticence among certain insurers to quantify operational risk also to blame for lack of progress in model development
Insurers wrestle with Solvency II internal model change policies
Supervisors say existing guidance has yet to be tested and may not work
Model behaviour: supervisors grapple with internal model approval
With regulators struggling to get comfortable with insurers’ internal models, and with the memory of the subprime crisis still lingering, the question of how to ensure that the models are robust is worrying supervisors. Blake Evans-Pritchard reports
Norwegian regulator to ease internal model timetable in wake of Solvency II delays
French regulator also considering adjusting pre-approval schedule
FSA proposals to ease Icas modelling burden raise questions over inclusion of Solvency II risk margin
Suggestions that regulator is already beginning to apply Solvency II assumptions to capital calculations