Risk based solvency norms and their validity

W.J. Willemse~H. Wolthuis, Nederland

In this article we investigate the resulting empirical situation of accepting a risk based solvency model as a legally valid method to determine minimum required solvency margins. We will apply the positive-normative distinction to probability based statements and with this distinction in mind we will argue that empirical validity cannot be defined as the conformity to the desired situation of a risk-based solvency norm. Instead, it can only be defined as the orientation of action towards that norm. We conclude that the establishment of a solvency norm primarily orients towards the equitableness of risk of all insurance undertakings within the jurisdiction.
Date: 1 June - Time: 16:15 to 17:45 - Room: 251
Theme: 1.B. Solvency measurements and asset-liability management