I could not understand the application of all points covered here-
According to Core Reading, Solvency II impacts
1. capital allocation- how? Is it referring to tier 1/tier 2 cap?
2. risk management- due to ORSA
3. performance management- how? What is performance here?
4. optimal product mix- how?
5. product design- how?
6. optimal asset mix- as assets are shocked, few assets lead to a higher capital requirement than others hence insurer would prefer assets which reduce capital requirement
7. corporate structure- how?
8. merger and acquisition activity- how?
9. management information- due to ORSA and reporting requirement of Solvency II
10. market position via external disclosures
Please help in clarifying.
According to Core Reading, Solvency II impacts
1. capital allocation- how? Is it referring to tier 1/tier 2 cap?
2. risk management- due to ORSA
3. performance management- how? What is performance here?
4. optimal product mix- how?
5. product design- how?
6. optimal asset mix- as assets are shocked, few assets lead to a higher capital requirement than others hence insurer would prefer assets which reduce capital requirement
7. corporate structure- how?
8. merger and acquisition activity- how?
9. management information- due to ORSA and reporting requirement of Solvency II
10. market position via external disclosures
Please help in clarifying.