KPMG Solvency II

Question 1

KPMG Solvency II - Basis of measurement

Answer 1

0.5% change of failure

Question 2

KPMG Solvency II - Intents of Solvency II

Answer 2

align regulatory and economic capital; choose own risk profile and match level of capital; early warning system; improve identification and mitigation of risks; streamline the way insurance groups are organized

Question 3

KPMG Solvency II - Aims of the 3 pillars

Answer 3

promote capital adequacy; transparancy in decision-making process; enhance supervisory review process

Question 4

KPMG Solvency II - Pillar 1

Answer 4

quantatative requirements - can use standard formula or internal model subject to supervisory approval

Question 5

KPMG Solvency II - Pillar 2

Answer 5

imposes higher standards of risk management within a firm - includes Own Solvency and Risk Assessment (ORSA)

Question 6

KPMG Solvency II - Pillar 3

Answer 6

transparancy for supervisors and public - private annual reports to supervisors and public solvency and financial condition report