Solvency II is a European Union Directive designed to reduce the risk of insolvency by implementing a consistent set of regulations for insurance providers across all Member States and the UK. AIR is committed to helping organizations address Solvency II requirements as its influence expands.
Best Practices for Using Catastrophe Models
Review recommendations on best practices for AIR’s catastrophe models related to using and managing exposure data, taking advantage of Touchstone® analysis options, correctly interpreting results, understanding AIR’s approach to model validation, and assessing data reasonability.
AIR Solvency II Reference Guide
Locate existing information and documentation that will help address Solvency II requirements.
AIR Solvency II Guidance on Compliance: Model Assumptions and Limitations
Find information on assumptions and limitations that apply across all models, and on specific key assumptions in the U.S. hurricane, earthquake, severe thunderstorm, and winter storm models, as well as the European extratropical cyclone model and Japan typhoon and earthquake models.
Industry Good Practice for Catastrophe Modelling under Solvency II
Review Solvency II documentation requirements and formal policies regarding out sourcing to third-party service providers, management of catastrophe model data, and options and settings used to obtain analysis results. (Published by the Association of British Insurers, contributed to by AIR Worldwide)
Non Modelled Risks: A Guide to More Complete Catastrophe Risk Assessment for Re(insurers)
Examine best practices for governance, identifying non-modelled risk, developing framework for quantification, extending catastrophe model use, and incorporating non-modelled risk in the capital model. (Published by the Association of British Insurers, contributed to by AIR Worldwide)
Client Use of AIR Documentation in Company Model Validation Documents
AIR Solvency II guides contain information from proprietary and confidential documents intended for use by AIR clients subject to the restrictions of the confidentiality provisions set forth in license and nondisclosure agreements, clearly distinguishable by confidentiality statements within the documents themselves. AIR clients may utilize excerpts and exhibits from AIR documents for the purposes of meeting Solvency II model validation requirements if the information is appropriately referenced, including the title of the AIR document and the numbers of any figures or tables used. If such excerpts are used, the client’s model documentation may only be circulated within the company itself and to the regulator, according to existing licensing and nondisclosure agreements.
Non-Client Access to AIR Documentation
As an entity that receives AIR model output, access to AIR Documentation may be requested to meet Solvency II requirements. Where appropriate, AIR documentation may be shared with non-clients in the context of Solvency II once a binding nondisclosure agreement has been signed.
Disclosure of AIR Documentation to Regulators
As a regulatory body, access to AIR documentation may be requested. AIR documentation may be shared with regulators in the context of Solvency II once a binding nondisclosure agreement has been signed.