Solvency II Glossary

Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
Acceptable assets Accident insurance Adjusted solvency capital requirement Admitted Assets Afliated investment risk Alternative
risk transfer Annuity Arms length transaction Asset-liability management Asset-liability mismatch risk Available economic capital
Available solvency margin Back-testing Best estimate Best estimate liability Biometric risk Book Value Break-up basis Business
risk Calamity risk Captive insurer Carrying amount Casualty Insurance Catastrophe risk Central Estimate Claims risk
Compliance risk Concentration risk Condence level Contagion Contingent capital Cost of capital approach Counterparty Credit
risk Credit insurance Credit risk Critical illness insurance Current entry value Current Estimate Current exit value Custody risk
Default risk Disability insurance Disability risk Diversication Double gearing Doengrade risk Dread disease insurance Earned
asset share Economic balance sheet Economic capital Economic value Eligible capital Embedded guarantee Embedded option
Embedded value Endowment insurance Entry value Equity risk European embedded value Excess capital Exit value Expected
loss (for credit insurance) Expected policyholder decit Expected shortfall Expense risk Extreme value model Fair value Financial
conglomerate Financial group Foreign exchange risk Funeral insurance Fungible capital General Insurance Going concern basis
Group insurance Guarantee Guaranteed benet Guaranteed element Health insurance Hedgeable risk Historic cost Home
supervisor Host supervisor Hybrid capital Ination risk In-force business Insolvency Insolvency fund Insurance contract
Insurance entity Insurance group Insurance guarantee scheme Insurance liability Interest rate risk Internal model Lapse Lapse
risk Lead supervisor Legal risk Liability insurance Life insurance Liquidity risk Longevity risk Loss given default Management
risk Marine and transport insurance Market-consistent value Market discipline Market risk Market value Market value margin
Mark-to-market Mark-to-model Migration risk Minimum capital requirement Mispricing risk Model risk Morbidity risk Mortality
risk Motor insurance Non-life insurance Non-diversiable risk Operational risk Option Parameter uncertainty risk Parent
company Pension scheme Percentile approach Permanent capital Persistency risk Premium risk Pricing risk Probability of default
Probability of ruin Procyclicality Product design risk Prot-sharing product Property and casualty insurance Property insurance
Provision Prudential lters Prudent person approach Pure endowment insurance Quantile approach Rating agency driven capital
Real-estate risk Regulatory capital Regulatory surplus Reinsurance Reinsurance counterparty risk Reinvestment risk Reputational
risk Required economic capital Reserve Reserve risk Risk margin Run-off basis Scenario analysis Sensitivity test Settlement risk
Solvency capital requirement Solvency margin Spread risk Standard Approach Strategic risk Stress test Supervisory ladder
Supervisory review process Surplus capital Surrender Surrender risk Systematic risk Systemic risk Tail-Value-at-Risk Target capital
Technical liabilities Technical provisions Technical reserves Technical risk Term insurance Time horizon Total balance sheet
approach Underwriting risk Unexpected loss (only for credit risk) Unit-linked product Universal life insurance Value-at-Risk Value
of in-force business Whole life insurance With-prots products Workers compensation insurance
2
Solvency ll Clossary
3
CLA Croupe Consullalil
Acknowledgements
The glossary projecl ol lhe Comile Luropeen des Assurances (CLA) and lhe Croupe
Consullalil Acluariel Luropeen (Croupe Consullalil) has been conducled in close
collaboralion wilh a wide range ol experls lrom lhe Luropean insurance induslry wilhoul
whose conlribulions lhis projecl could nol have been achieved.
A word ol lhanks goes lo lhose lile and non-lile experls lrom lhe nalional associalions
ol lhe CLA and lhe Croupe Consullalil who have conlribuled wilh lheir leedback
lhroughoul lhe process.
Special lhanks go lo Dirk Navesl who has managed lhe projecl lor lhe CLA and
Poll Slolling and Pelra Wildemann who have managed lhe projecl lor lhe Croupe
Consullalil.
Important Notice
The CLA-Croupe Consullalil Solvency ll Clossary provides a common sel ol lerminology lor a
selecled number ol lerms. ll aims lo be an objeclive relerence documenl and nol presenling
lhe parlicular views ol CLA and lhe Croupe Consullalil.
Several ol lhe delnilions in lhis glossary are slill being discussed and debaled by lhe various
parlies involved in Solvency ll. Consequenlly, lhis work will need lo conlinue lo evolve in lhe
lulure in line wilh lhe developmenls ol Solvency ll.
CLA - Croupe Consullalil
Brussels, March 2007
All rights reserved
4
Solvency ll Clossary
5
CLA Croupe Consullalil
1.Introductory Note
Solvency ll is one ol lhe mosl challenging and exciling projecls in Luropes linancial
Services Aclion Plan. The imporlance and necessily lo review lhe exisling lramework is
generally accepled, lhe scope ol lhe projecl is exlremely broad, lhe parlies involved are
numerous and lhe ambilion is lhus very high.
ll has lrequenlly been noled by lhe many slakeholders and involved parlies lhal a lack
ol common delnilions on key lerms exisls, lor example wilh respecl lo risk delnilions
and valualion principles. This polenlially leads lo a reduced underslanding and even
misunderslandings belween parlies involved and has lherelore been idenliled as one
ol lhe polenlial obslacles lo rapid progress and lhe building ol consensus wilhin lhe
Solvency ll projecl.
The Comile Luropeen des Assurances (CLA) and lhe Croupe Consullalil Acluariel
Luropeen (Croupe Consullalil) have lherelore decided lo work on a glossary ol Solvency
ll lerminology, locusing on a selecled number ol key lerms.
The purpose ol lhis documenl is lo provide a common sel ol lerminology lor all parlies
involved in lhe Solvency ll projecl, hence aiming lo be an objeclive relerence documenl
and nol presenling lhe parlicular views ol lhe CLA and lhe Croupe Consullalil. The
glossary wanls lo creale clarily and alignmenl on lerminology and concepls which are
currenlly being relerred lo in mulliple ways, and which are currenlly being delned in a
divergenl manner by various users. To lhis end, lhe glossary proposes prelerred lerms
where mulliple lerms exisl lor lhe same concepl. Where appropriale, noles have been
provided in addilion lo lhe delnilions lo lurlher improve clarily and give more delailed
explanalion.
The glossary only covers a seleclion ol lerms used in lhe conlexl ol Solvency ll, relaling
lo risk lypes, insurance producls availabilily requiremenls and risk managemenl. ll has
nol been lhe ambilion lo be exhauslive, nor lo provide delnilions lor well-delned and
generally accepled lerminology. The seleclion ol lerms and lhe delnilions relained in
lhis glossary are based on discussions held belween lhe CLA and lhe Croupe Consullalil.
Where possible we have drawn on exisling delnilions, giving parlicular weighl lo
lormal sources. leedback has been received lrom a large number ol individuals and
organisalions. The CLA and lhe Croupe Consullalil wanl lo lhank lhose involved lor
lheir valuable conlribulions.
Some ol lhe delnilions in lhis glossary are slill being discussed and debaled by lhe
various parlies involved in Solvency ll. Consequenlly lhis work will need lo conlinue lo
evolve in lhe lulure.
The glossary projecl ol lhe CLA and lhe Croupe Consullalil has been conducled in
close collaboralion wilh a wide range ol experls lrom lhe Luropean insurance induslry
wilhoul whose conlribulions lhis projecl could nol have been achieved.
6
Solvency ll Clossary
7
CLA Croupe Consullalil
2. List of Defned Terms
Acceplable assel
Accidenl insurance
Adjusled Solvency Capilal Pequiremenl
Admilled assel
Alllialed inveslmenl risk
Allernalive risk lransler
Annuily
Arms lenglh lransaclion
Assel-liabilily managemenl
Assel-liabilily mismalch risk
Available economic capilal
Available solvency margin
8ack-lesling
8esl eslimale
8esl eslimale liabilily
8iomelric risk
8ook value
8reak-up basis
8usiness risk
Calamily risk
Caplive insurer
Carrying amounl
Casually insurance
Calaslrophe risk
Cenlral eslimale
Claims risk
Compliance risk
Concenlralion risk
Conldence level
Conlagion
Conlingenl capilal
Cosl ol capilal approach
Counlerparly credil risk
Credil insurance
Credil risk
Crilical illness insurance
Currenl enlry value
Currenl eslimale
Currenl exil value
Cuslody risk
Delaull risk
Disabilily insurance
Disabilily risk
Diversilcalion
Double gearing
Dread disease insurance
Lconomic balance sheel
Lconomic capilal
Lconomic value
Lligible capilal
Lmbedded guaranlee
Lmbedded oplion
Lmbedded value
Lndowmenl insurance
Lnlry value
Lquily risk
Luropean embedded value
Lxcess capilal
Lxil value
Lxpecled loss (only lor credil insurance)
Lxpecled policyholder delcil
Lxpecled shorllall
Lxpense risk
Lxlreme value model
lair value
linancial conglomerale
linancial group
loreign exchange risk
luneral insurance
lungible capilal
Ceneral insurance
Coing concern basis
Croup insurance
Cuaranlee
Cuaranleed benell
Cuaranleed elemenl
Heallh insurance
Hedgeable risk
8
Solvency ll Clossary
Hisloric cosl
Home supervisor
Hosl supervisor
Hybrid capilal
lnlalion risk
ln-lorce business
lnsolvency
lnsurance conlracl
lnsurance group
lnsurance guaranlee scheme
lnsurance obligalion
lnleresl rale risk
lnlernal model
Lapse
Lapse risk
Lead supervisor
Legal risk
Liabilily insurance
Lile insurance
Liquidily risk
Longevily risk
Loss given delaull
Managemenl risk
Marine, avialion, and lransporl insurance
Markel-consislenl valualion
Markel discipline
Markel risk
Markel value
Markel value margin
Mark-lo-markel valualion
Mark-lo-model valualion
Migralion risk
Minimum Capilal Pequiremenl
Mispricing risk
Model risk
Morbidily risk
Morlalily risk
Molor insurance
Non-diversilable risk
Non-lile insurance
Operalional risk
Oplion
Parameler uncerlainly risk
Parenl company
Pension scheme
Percenlile approach
Perlormance linked benell
Permanenl capilal
Persislency risk
Premium risk
Pricing risk
Probabilily ol delaull
Probabilily ol ruin
Procyclicalily
Producl design risk
Properly and casually insurance
Properly insurance
Provision
Prudenlial lller
Prudenl person approach
Pure endowmenl insurance
Quanlile approach
Paling agency driven capilal
Peal-eslale risk
Pegulalory capilal
Pegulalory surplus
Peinsurance
Peinsurance counlerparly risk
Peinveslmenl risk
Pepulalional risk
Pequired economic capilal
Peserve risk
Pisk margin
Pun-oll basis
Scenario analysis
Sensilivily lesl
Selllemenl risk
Solvency Capilal Pequiremenl
Solvency margin
Spread risk
Slandard lormula
Slralegic risk
Slress lesl
Supervisory ladder
9
CLA Croupe Consullalil
Supervisory review process
Surely business
Surplus capilal
Surrender
Surrender risk
Syslemalic risk
Syslemic risk
Tail-Value-al-Pisk
Targel capilal
Technical provision
Technical risk
Term insurance
Time horizon
Tolal balance sheel approach
Underwriling risk
Unexpecled loss (only lor credil risk)
Unil-linked conlracl
Universal lile insurance
Value-al-Pisk
Value ol in-lorce business
Whole lile insurance
Wilh-proll producl
Workers compensalion insurance
!0
Solvency ll Clossary
!!
CLA Croupe Consullalil
3. Glossary
Acceptable asset Capilal (eilher on or oll-balance sheel) which, under
regulalory rules, may be laken inlo accounl (lully or parlially)
lo cover insurance obligalions.
Pelaled lerms. Available solvency margin, Eligible capital
Accident insurance Ceneric lerm applying lo all lypes ol insurance indemnilying
or reimbursing lor losses caused by bodily accidenl or lor
expenses ol medical lrealmenl necessilaled by bodily
accidenl.
Pelaled lerm. Health insurance
Defned as Accident and Health insurance in EU law. For more
details see Annex A and B(a) of First Council Non-Life Directive
73/239/EEC and consecutive amending directives.
Adjusted Solvency
Capital Requirement
Adjuslmenl lo lhe Solvency Capilal Pequiremenl under Pillar
l based on Pillar ll regulalion under lhe Solvency ll regime.
Pelaled lerms. Minimum Capital Requirement, Solvency Capital
Requirement
Pillar II adjustments are expected to be made on the basis of the
supervisory review process, hence being frm specifc.
Admitted asset
See. Acceptable asset and Eligible capital
Affliated
investment risk
The risk lhal an inveslmenl in a member company ol
lhe same lnancial conglomerale or lnancial group may
be dillcull lo sell, lose ils value, or creale a drain on lhe
lnancial resources ol lhe insurer.
!
Pelaled lerm. Market risk
A
!2
Solvency ll Clossary
Alternative risk transfer Any lorm ol risk lransler lhal includes al leasl an elemenl ol
insurance risk, opposed lo pure lnancial risk, olher lhan a
pure insurance conlracl.
2
Abbrevialion. ART
Pelaled lerm. Reinsurance
Possible features of ART include, but are not restricted to:
3
Tailor-made solutions;
Multi-year policies;
Often the coverage of risks that the conventional market would
regard as uninsurable;
Often the inclusion of some form of risk transfer of non-
insurance risk;
The defnition of ART includes, but is not restricted to, fnancial
reinsurance and securitisation of insurance risks.
4
Annuity* A conlracl lhal provides a series ol regular paymenls (bolh
amounl and liming) by lhe insurer (amounl payable / benell)
under speciled condilions lor a speciled period ol lime.
5

Pelaled lerm. Pension scheme
An annuity may begin at a specifed time after the issuing of the
contract (deferred annuity), or following a specifed trigger such
as death or disability, e.g. orphans benefts or disability annuities.
Annuity benefts under an insurance contract typically end upon the
death of the insured person, or cease upon recovery of the insured
from disability or after a predefned period. Coverage may relate to
one or two persons, respectively single-life or joint-life.
The contract can be funded by the policyholder by means of a single
premium or through a series of instalments. The amount of regular
payments to the benefciary may be fxed or not, i.e. variable or
fxed annuity, certain or temporary. Annuity contracts are sold on
an individual and group basis.
Arms length
transaction
A lransaclion belween lwo relaled or alllialed parlies lhal
is conducled as il lhey were unrelaled, so lhal lhere is no
queslion ol a conlicl ol inleresl.

A
* The delnilion applies lo annuily producls wilhin lhe LU, nol per delnilion lo US producls in ils
enlirely.
!3
CLA Croupe Consullalil
Asset-liability
management
The managemenl ol an insurers assels wilh specilc relerence
lo lhe characlerislics ol ils liabililies so as lo oplimise lhe
balance belween risk and relurn.
6

Abbrevialion. ALM
Pelaled lerm. Asset-liability mismatch risk
Asset-liability management forms part of the overall risk
management framework of an insurer.
7
Asset-liability mismatch
risk
Pisk ol a change in value lrom a devialion belween assel and
liabilily cash lows, prices, or carrying amounls, caused by.
A change in aclual cash lows (lor assels and/or
liabililies),
A change in lhe expeclalions on lulure cash lows (lor
assels and/or liabililies),
Accounling inconsislencies.
Synonym. Asset-liability risk
Pelaled lerm. Asset-liability management
The deviation from the expected values may relate to a difference (or
different evolvement) in timing and/or the amount of cash fows.
Asset-liability mismatch risk originates from changes in market risk-
factors.
See. Risk Map in Appendix l lor an overview ol lhe lypes ol markel
risk.
Available economic
capital
lnlernally delned capilal measure based on lhe companies
valualion ol lhe markel-consislenl value ol assels minus lhe
markel-consislenl value ol obligalions.
Pelaled lerm. Required economic capital
Available solvency
margin
The dillerence belween lhe value under regulalory
measuremenl ol lhe eligible capilal held by an insurer, and
lhe sum ol lhe values under regulalory measuremenl ol lhe
obligalions.
Pelaled lerm. Eligible capital
A
!4
Solvency ll Clossary
Back-testing The process ol comparing aclual experience wilh slalislical
prediclions.
For example used as a formal statistical framework to verify if actual
losses are in line with projected losses in VaR models.
Best estimate The probabilily-weighled average, also relerred lo lhe
mean. The eslimalion process is unbiased and based on
all currenlly available inlormalion including inlormalion
ol currenlly observable lrends, bul excluding ellecls lrom
evenls nol yel occurred.
Pelaled lerm. Best estimate liability
Also referred to as central estimate or current estimate.
The concept of best estimate applies to many circumstances,
including the valuation of insurance contracts, the valuation of
assets or liabilities, a cash fow stream, an individual assumption, or
a valuation approach.
8
Sometimes the term best estimate refers specifcally to the current
estimation of the mean value, i.e. the probability-weighted average,
of cash fows. In other cases, the term best estimate refers specifcally
to the current estimation of the mean value of risk weighted cash
fows, as e.g. IAS 39.42.
B
!5
CLA Croupe Consullalil
Best estimate liability The expecled or mean value (probabilily weighled average)
ol lhe presenl value ol lulure cash lows lor currenl
obligalions, projecled over lhe conlracls run-oll period,
laking inlo accounl all up-lo-dale lnancial markel and
acluarial inlormalion.
Pelaled lerm. Best estimate
Sometimes also being referred to as central estimate or current
estimate.
Note that the term liability does not refer to a liability in the
accounting sense, but is used in its general meaning (as a synonym
for any certain or potential obligation for payment now or in the
future). The use of the term best estimate liability has historically
grown. When used in the context of solvency, calculations should
include all current obligations, including policyholder obligations
and expenses, e.g. administration cost and loss adjustments, and
explicitly value all embedded options and guarantees.
Best estimate values do not include any risk margins whatsoever.
The assessment of the best estimate liability refers to the valuation
of future liability cash fows in aggregate, not to each individual
assumption, as in practice it can be very diffcult to determine
whether an individual assumption is a best estimate.
9
The best estimate refers to the total obligations under the contract,
taking into account the timing for answering these obligations,
hence discounting is implicitly included.
Whether it is possible to split the measurement of the liability in
an estimate of the mean value of the distribution function and an
estimate of the risk adjustments, depends on circumstances, but
it should provide the same result as directly estimating the entire
liability.
Biometric risk Underwriling risks covering all risks relaled lo human lile
condilions, e.g. dealh, disabilily, longevily, bul also birlh,
marilal slalus, age, and number ol children (e.g. in colleclive
pension schemes).
Pelaled lerms. Disability risk, Longevity risk, Morbidity risk,
Mortality risk
See. Risk Map in Appendix l lor an overview ol lhe lypes ol lile
underwriling risks.
Book value
See. Carrying amount
B
!6
Solvency ll Clossary
Break-up basis A melhod ol considering lhe lnancial silualion ol an
inslilulion assuming lhal lhe company is liquidaled by
sellling all obligalions al lheir currenl value as lar as lhe
currenl value ol available resources allows lhal.
Synonym. Wind-up basis
Pelaled lerms. Going concern basis, Run-off basis
Business risk Unexpecled changes lo lhe legal condilions lo which
insurers are subjecl, changes in lhe economic and social
environmenl, as well as changes in business prolle and lhe
general business cycle.
!0

Pelaled lerms. Custody risk, Management risk, Operational
risk, Reputational risk, Strategic risk
In practice it is often diffcult to distinguish between legal changes
causes business risk and those causing insurance risk.
Business risk is diffcult to quantify and is hence expected not to be
modelled under Solvency II regulation.
See. Risk Map in Appendix l.
B
!7
CLA Croupe Consullalil
Calamity risk The risk lhal a single evenl ol major magnilude leads lo a
signilcanl devialion in aclual claims lrom lhe lolal expecled
claims.
Pelaled lerm. Catastrophe risk
The concept strongly relates to the notion of catastrophe risk, but
is considered to be broader, as catastrophe risk relates to events
occurring over a short period, whereas calamity risks typically
include longer lasting events, e.g. a pandemic.
The notion of calamity risk is per defnition relative to the fnancial
position of the individual insurer and any signifcance will need to
be defned in mathematical terms. The exact defnition of what
constitutes a calamity hence varies per insurer.
Captive insurer An insurance company eslablished by a parenl lrm lor
lhe purpose ol insuring lhe exposures ol lhe parenl or ils
allliales.
!!
Pelaled lerms. Financial conglomerate, Financial group
Usually only a small part, if any, of a captives risk exposure is related
to providing insurance or reinsurance to other parties.
!2
This defnition does not include mutual insurers, because they have
no share capital so the ownership is jointly and undivided amongst
its members, unlike a captive where the ownership is linked to a
parent or group.
Carrying amount The amounl al which an assel or liabilily is recognised in lhe
balance sheel.
Synonym. Carrying value
Linked to IAS 36.6 (impairment of assets), IAS 16.6 (property, plant
and equipment) and IAS 38.8 (intangible assets).
!3
This value is not necessarily the same as historic cost, e.g. because
the carrying amount takes into account depreciation or could be a
fair value.
Casualty insurance A generic lerm used lo describe all lypes ol insurance
producls which are nol Lile, Heallh, or Properly insurance.
Pelaled lerms. Liability insurance, Property insurance
C
!8
Solvency ll Clossary
Catastrophe risk The risk lhal a single evenl, or series ol evenls, ol major
magnilude, usually over a shorl period (ollen 72 hours),
leads lo a signilcanl devialion in aclual claims lrom lhe lolal
expecled claims.
!4
Pelaled lerm. Calamity risk
The notion of catastrophe risk is per defnition relative to the
fnancial position of the individual insurer and any signifcance will
need to be defned in mathematical terms. The exact defnition of
what constitutes a catastrophe hence varies per insurer.
Central estimate
See. Best estimate
Claims risk An underwriling risk. A change in value caused by ullimale
cosls lor lull conlraclual obligalions (claims wilhoul
adminislralion cosls) varying lrom lhose assumed when
lhese obligalions were eslimaled.
Pelaled lerm. Underwriting risk
Claims risk is often split in reserve and premium risk in order to
distinguish between expired and unexpired contracts.
Reserve risk only relates to incurred claims, i.e. existing claims, (e.g.
including IBNR and IBNER), and originates from claim sizes being
greater than expected, differences in timing of claims payments
from expected, and differences in claims frequency from those
expected.
Premium risk only relates to future claims (excluding IBNR and
IBNER), and originates from claim sizes being greater than expected,
differences in timing of claims payments from expected, and
differences in claims frequency from those expected.
See. Risk Map in Appendix l.
Compliance risk The risk ol legal or regulalory sanclions resulling in a lnancial
loss, or loss ol repulalion as a resull ol an insurers lailure lo
comply wilh laws, regulalions, rules, relaled sell-regulalory
organisalion slandards, and codes ol conducl.
!5

Pelaled lerms. Business risk, Legal risk, Operational risk
See. Risk Map in Appendix l.
C
!9
CLA Croupe Consullalil
Concentration risk The exposure lo increased losses associaled wilh inadequalely
diversiled porllolios ol assels and/or obligalions.
Pelaled lerm. Diversifcation
Concentration risk for an insurer may arise with respect to
investments in a geographical area, economic sector, or individual
investments, or due to a concentration of business written within a
geographical area, of a policy type, or of underlying risks covered.
Confdence level Slalislical measure ol lhe level ol cerlainly regarding an
oulcome, lypically expressed as lhe probabilily value (! - )
associaled wilh a conldence inlerval.
The confdence level is often expressed as a percentage, e.g. the
confdence level with = 0,05, is the 95% confdence level.
Contagion The propagalion ol lhe ellecl ol a lailure or lnancial dislress
ol an inslilulion in a sequenlial manner lo olher inslilulions,
markels or syslems, or lo olher parls ol a lnancial group or
lnancial conglomerale.
Pelaled lerm. Systemic risk
Contingent capital Conlraclually obligaled inslrumenls lhal lrigger under a
pre-delned condilion.
!6
Cost of capital approach An approximalion lhrough which a risk margin is delermined
based on lhe presenl value ol lhe cosl ol capilal charge lor
all lulure capilal requiremenls unlil run-oll.
Pelaled lerm. Market value margin
The cost of capital approach is often applied to determine the
market-consistent value of cash fows with non-hedgeable risks
(e.g. motor claims). In this case the risk margin is referred to as the
Market value margin.
Counterparty credit risk
See. Credit risk
Credit insurance A lorm ol guaranlee againsl loss resulling lrom delaull on
lhe parl ol deblors.
!7

Synonym. Credit risk insurance
Related legal EU term is Credit and Suretyship Insurance. For more
details see Annex A and B(g) of First Council Non-Life Directive
73/239/EEC.
C
20
Solvency ll Clossary
Credit risk The risk ol a change in value due lo aclual credil losses
devialing lrom expecled credil losses due lo lhe lailure lo
meel conlraclual debl obligalions.
Pelaled lerms. Default risk, Settlement risk, Spread risk
Credit risk comprises default and settlement risk.
Credit risk can arise on issuers of securities (in the companys
investment portfolio), debtors (e.g. mortgagors), or counterparties
(e.g. on reinsurance contracts, derivative contracts, or deposits) and
intermediaries, to whom the company has an exposure.
!8
A related but different type of risk, classifed under market risk,
is spread risk, which refers to the risk of a change value due to
movements in the market price of credit risk.
Expected loss and Unexpected loss for credit risk are specifc
elements of Basel II and the Capital Requirements Directive for
the calculation of capital requirements for credit risk. The former
is defned as the ratio of the amount expected to be lost on an
exposure from a potential default of a counterparty or dilution over
a one year period to the amount outstanding at default, the latter
as the difference between the maximum loss incurred and expected
losses, measured to a specifc confdence level.
!9
See. Risk Map in Appendix l.
Critical illness insurance An insurance policy lhal pays a benell il lhe insured is
diagnosed wilh a speciled crilical illness during lhe policy
lerm.
Abbrevialion. CII
Synonym. Dread disease insurance
Pelaled lerms. Health insurance, Life insurance
Critical illness insurance can be sold as a separate health or life
insurance policy, but can also be a rider to a (group) life or health
insurance contract.
C
2!
CLA Croupe Consullalil
Current entry value The amounl lhal lhe insurer would charge lo a policyholder
loday lor enlering inlo a conlracl wilh lhe same remaining
righls and obligalions as lhe exisling conlracl.
20
Synonym. Entry value
Pelaled lerm. Current exit value
At inception, the measurement would be calibrated to the actual
premiums incurred (and recoverable acquisition cost incurred).
That calibration would act as a starting point for determining risk
margins at later dates.
2!
Because there is no secondary market for most insurance liabilities,
that amount would need to be estimated.
22
Current estimate See. Best estimate
Current exit value The amounl lhal lhe insurer would expecl lo have lo pay
loday lo anolher enlily il il lranslerred all ils remaining
conlraclual righls and obligalions immedialely lo lhal enlily
(and excluding any paymenl receivable or payable lor olher
righls and obligalions, such as renewal righls).
23
Synonym. Exit value
Pelaled lerm. Current entry value
Because there is no secondary market for most insurance liabilities,
that amount would need to be estimated.
24
This is a type of market-consistent value of the entire portfolio of
the insurer and similar to the fair value of that portfolio.
Custody risk The risk arising lrom lhe lailure lo hold secure cuslody ol
assels or lo incur a loss in lailing lo oblain or release lhe
correcl secure cuslody when conducling purchase and sale
lransaclions.
25

Pelaled lerms. Business risk
C
22
Solvency ll Clossary
Default risk The risk ol a change in value caused by lhe lacl lhal aclual
delaull rales deviale lrom expecled delaull rales wilh
respecl lo non-paymenl ol inleresl or principle.
Pelaled lerms. Credit risk, Settlement risk, Spread risk
Default risk is a sub-type of credit risk, which also comprises
settlement risk.
See. Risk Map in Appendix l.
Disability insurance A heallh or lile insurance policy, or rider lo a lile insurance
policy, lhal provides a single or periodic paymenls lo replace
losl income when lhe insured is unable lo work because ol
illness or injury.
26
Abbrevialion. DI
Synonym. Disability income insurance
Pelaled lerm. Health insurance
Disability risk A change ol value caused by a devialion ol lhe aclual
randomness in lhe rale ol insured persons lhal are incapable
lo perlorm one or more dulies ol lheir occupalion due lo
a physical or menlal condilion, compared lo lhe expecled
randomness.
Pelaled lerms. Biometric risk, Morbidity risk
Disability risk only relates to cover against loss of income, contrary
to morbidity risk, relating to cover other than loss of income, e.g.
medical expenses.
Such a disability may be partial (a disabled person can perform
a material part of their occupation), total (a disability which is
suffcient to prevent the person from performing any of the duties
of their occupation), permanent (the disability is expected to be for
the life of the person), or temporary (a disability from which the
person is expected to recover).
See. Risk Map in Appendix l.
D
23
CLA Croupe Consullalil
Diversifcation Peduclion in risks among assels and/or obligalions ol an
inslilulion by accumulaling risks lhal are nol lully correlaled
in an aggregaled risk posilion, e.g. lhe aggregaled amounl
ol risks wilhin a producl porllolio or al a company level is smaller
compared lo lhe simple addilion ol lhe individual risks.
Pelaled lerms. Concentration risk, Systematic risk
Diversifcation is based on the principle that not all risks will crystallise
at the same moment - provided that the underlying sources of risk,
i.e. risk drivers or triggers, are not fully dependent.
Diversifcation with respect to insurance obligations is typically
achieved through writing a large portfolio of independent
contracts, by writing insurance across a number of different lines,
or by geographical spread or directly in capital markets. Asset
diversifcation is typically achieved through spreading investments
in order to avoid excessive concentration of assets or exposure to a
single counterparty.
Double gearing Silualion in which one enlily holds capilal lor regulalory
purposes, which is issued by anolher enlily wilhin lhe
same group and lhe issuer is also using lhe same capilal lor
regulalory purposes.
27
ln lhal silualion, exlernally generaled
capilal ol lhe group is geared up lwice, lrsl by lhe parenl,
and lhen a second lime by lhe dependanl.
Double gearing (and multiple gearing) is normally associated with a
parent down streaming capital to its dependant. It can also take the
form of an entity holding capital for regulatory purposes issued by
an entity above it in the groups organisational chart (up streamed
capital), or by a sister affliate.
Multiple gearing occurs when the dependant in a situation of double
gearing further down streams the capital for regulatory purposes
to a third entity within the group, so that the parents externally
generated capital is geared up a third time.
28
Dread disease insurance See. Critical illness insurance
D
24
Solvency ll Clossary
Economic balance sheet 8alance sheel slalemenl based on one ol lhose accounling
approaches using markel-consislenl values lor all currenl
assels and currenl obligalions relaling lo in-lorce business,
including oll-balance sheel ilems.
Pelaled lerm. In-force business, Total balance sheet approach
Depending on the reporting approach different items can be recognized
or not recognized in the balance sheet, as well the defnition of a
current resource or obligation can vary from approach to approach.
The economic balance sheet provides the market-consistent value of
the shareholder equity.
Economic capital
See. Available economic capital, Required economic capital
Economic value
See. Market-consistent valuation
Eligible capital Capilal (eilher on or oll-balance sheel) which, under
regulalory rules, may be laken inlo accounl (lully or parlially)
in delermining lhe insurers available capilal lor solvency
purposes.
Pelaled lerm. Available solvency margin
Also referred to also as admitted assets, acceptable assets, and
unrestricted assets, but eligible capital is the preferred term for
Solvency II purposes.
More formally referred to in European Commission publications as
Eligible Elements to cover Capital Requirements.
Embedded guarantee
See. Guaranteed beneft, Guaranteed element
Embedded option
See. Option
E
25
CLA Croupe Consullalil
Embedded value An eslimale ol lhe value lo shareholders ol a book ol
insurance business al a given dale, consisling ol lhe lollowing
componenls.
29
lree surplus allocaled lo lhe covered business,
Pequired capilal, less lhe cosl ol holding required
capilal,
Value ol lulure shareholder cash lows lrom in-lorce
covered business.
Abbrevialion. EV
Pelaled lerms. European embedded value, Value of in-force
business
Theembedded value concept is applicable to general insurance,
although it is more commonly encountered in the life context.
The value of renewals of existing contracts is included, but the value
of future new contracts is excluded.
30
Endowment insurance lnsurance payable lo lhe benelciary il lhe insured survives
lhe malurily dale ol lhe conlracl, or lo a benelciary il lhe
insured dies prior lo lhe malurily dale.
3!
Pelaled lerms. Life insurance, Pure endowment insurance
The minimum benefts are defned at the point of sale.
Entry value
See. Current entry value
Equity risk The risk ol a change in value caused by devialions ol lhe
aclual markel values ol equilies and/or income lrom equilies
lrom lheir expecled values.
32
Pelaled lerms. Market risk, Real-estate risk
See. Risk Map in Appendix l.
European embedded
value
A melhod lor calculaling lhe embedded value according lhe
principles and guidelines sel by lhe ClO lorum.*
Abbrevialion. EEV
Pelaled lerm. Embedded value
Excess capital
See. Surplus capital
Exit value
See. Current exit value
E
*

Chiel linancial Ollcer lorum, lorum ol major Luropean insurance companies.
26
Solvency ll Clossary
Expected loss
(only for credit risk)
See. Credit risk
Expected policyholder
defcit
Pisk-measure used lo delermine lhe risk-based capilal ol an
insurer. ll relers lo lhe expecled cosl ol insolvency.
Abbrevialion. EPD
Pelaled lerms. Probability of ruin, Value-at-Risk
The expected cost is obtained through multiplying the probability
of the occurrence of insolvency by the average cost of that
insolvency.
There are different defnitions available for this term.
Expected shortfall
See. Tail-Value-at-Risk
Expense risk The risk ol a change in value caused by lhe lacl lhal lhe
liming and/or lhe amounl ol expenses incurred dillers lrom
lhose expecled, e.g. assumed lor pricing basis.
Synonym. Operating expense risk
Pelaled lerm. Operational risk
See. Risk Map in Appendix l.
Extreme value model Malhemalical and probabilislic models lhal provide melhods
lo assign probabililies lo lhe lails ol lhe dislribulion curve ol
a parlicular kind ol risk laclor.
Lxlreme value lheory covers lhe lollowing lwo main lypes
ol models.
The dislribulion ol lhe maximum value ol a sequence
ol random observalions, as a relerence dislribulion lor
more general cases,
The dislribulion ol lhe excesses over a high lhreshold.
E
27
CLA Croupe Consullalil
Fair value The amounl lor which an assel could be exchanged or a
liabilily sellled, belween knowledgeable, willing parlies in an
arms lenglh lransaclion lAS 32, !!.
33

Pelaled lerms. Arms length transaction, Market value, Market-
consistent valuation
This is a similar concept to market value, but the fair value may be a
mark-to-model price if no actual market price for asset/liability exists.
It needs to be considered that there exist different concepts on
what a market price is, especially considering prices observed in
markets which are not deep, active or liquid, or where different
markets exist.
Financial conglomerate Any group ol enlilies under common conlrol whose exclusive
or predominanl aclivilies consisl ol providing signilcanl
services in al leasl lhe insurance seclor and lhe banking
seclor or inveslmenl services seclor, subjecl lo condilions
delned in LU law.
34

Abbrevialion. FC
Pelaled lerm. Financial group
Financial group A group ol underlakings deploying lnancial aclivilies, which
consisls ol a parenl underlaking, ils subsidiaries, and lhe
enlilies in which lhe parenl underlaking or ils subsidiaries
hold a signilcanl parlicipalion. Or, underlakings linked lo
each olher by a relalionship subjecl lo condilions delned
in LU law.
35
Pelaled lerm. Financial conglomerate
F
28
Solvency ll Clossary
Foreign exchange risk The risk ol a change in value caused by lhe lacl lhal aclual
loreign currency exchange rales diller lrom lhose expecled.
Abbrevialion. FX risk
Synonym. Currency risk
Foreign exchange risk can arise if the assets and liabilities of an
insurer are not in the same currency, or if contracts for administrative
and other services are contracted in a currency different to the
currency implied in the premium determination.
Also, in some jurisdictions, the sale of contracts in other than
the local currency has an impact on the rates of persistency or
discontinuance in the event that the policyholders are exposed to
a mismatch.
36
For insurers it is common to distinguish between FX mismatch risk,
where there are differences in currencies of assets and liabilities or
supporting capital, and FX translation risk, which arises in groups
where the currency of assets and liabilities/supporting capital in a
local entity is different to the reporting currency of the group.
37
See. Risk Map in Appendix l.
Funeral insurance A lile policy wilh a low sum assured inlended lo pay lor lhe
burial cosls on lhe dealh ol lhe insured.
38

Synonym. Funeral cost insurance
Pelaled lerm. Life insurance
Also referred to as an assistance policy.
39
Fungible capital Thal parl ol lhe capilal ol a group which can be lranslerred
belween dillerenl legal enlilies ol lhe group.
Capital fow from a legal entity may be restricted due to regulatory
capital requirements.
However a group has always the option to sell a legal entity and
thereby free capital.
F
29
CLA Croupe Consullalil
General insurance Ceneric lerm moslly used in Anglo-Saxon counlries lo reler
lo all risks olhers lhan lile.
Synonym. Non-Life insurance
Going concern basis A melhod ol considering lhe lnancial silualion assuming
lhal an enlily will conlinue lo operale.
40
Pelaled lerms. Break-up basis, Run-off basis
Going concern means that the entity (which can be a holding entity)
continues its operations. It does not impose requirements on the
type of operations, only that the total business volume should
not be reduced too much. Hence, the selling of part, or even the
entire insurance business, while starting another insurence business
does not per defnition violate the going concern assumption. The
purpose is mainly to refer to a situation where the entity is able
to proceed all its activities in the foreseeable future unforced by
liquidation procedures.
Group insurance Conlracls in which insurance cover is provided lo a number
ol insured people (normally a worklorce) or a number ol
olher individual risks ol one parly, usually lhe counler-parly,
or many allecled parlies, which are nol necessarily parlies
under lhe conlracl, under a single masler conlracl.
The group plan is typically arranged by the employer of the insured
individual or another group, e.g. sport clubs for all their members
or automobile clubs for third party liability of all their members.
Group contracts and policy conditions are usually issued on a yearly
renewable term, but permanent plans also exist. The premium may
be shared between contract holder and those insured.
Guarantee
See. Guaranteed beneft, Guaranteed element
G
30
Solvency ll Clossary
Guaranteed beneft Paymenls or olher benells lo which a parlicular policyholder
or inveslor has an uncondilional righl lhal is nol subjecl lo
lhe conlraclual discrelion ol lhe issuer.
4!
Pelaled lerm. Guaranteed element
The unconditional right of the policyholder implies that no condition
is subject to the insurers discretion, nor to insurers performance.
Hence, a guaranteed beneft, or its determination, is contractually
stipulated without any ability of the insurer to infuence that
beneft, neither by discretion nor by its performance. Accordingly,
a guarantee is a risk bearing feature, since the amount to be paid
might deviate from the earnings of the insurer, without the ability
of the insurer to avoid that.
Guaranteed element An obligalion lo pay guaranleed benells, included in a
conlracl lhal may also conlain olher benells, which may be
subjecl lo insurers discrelion or subjecl lo lhe perlormance
ol lhe insurer.
42
Pelaled lerm. Guaranteed beneft
G
3!
CLA Croupe Consullalil
Health insurance Ceneric lerm applying lo all lypes ol insurance indemnilying
or reimbursing lor losses (e.g. loss ol income) caused by
illness or disabilily, or lor expenses ol medical lrealmenl
necessilaled by illness or disabilily.
43
Pelaled lerms. Accident insurance, Disability insurance
Defned as Accident and Health insurance in EU law. For more
details see Annex A and B(a) of First Council Non-Life Directive
73/239/EEC and consecutive amending directives.
Hedgeable risk A risk associaled wilh an assel or an obligalion lhal can
be elleclively neulralised by buying or selling a markel
inslrumenl (or engaging in a conlracl wilh a lhird parly in an
arms lenglh lransaclion under normal business condilions),
whose value is expecled lo change in such a way as lo ollsel
lhe change in value ol lhe assel or liabilily caused by lhe
presence ol lhe risk.
Pelaled lerms. Arms length transaction, Diversifcation,
Systematic risk
The term hedgeable risk depends on market conditions. It is not a
characteristic of the risk itself. Further it may be that the risk can be
cheaper and more easily mitigated through other means, e.g. some
storm risks can be mitigated at lower cost in a world-wide pool than
through storm bonds.
Non-hedgeable risks are risks that cannot be hedged or easily
transferred to a third party due to the lack of a deep and liquid
market.
44
Historic cost Assels are recorded al lhe amounl ol cash or cash equivalenls
paid or lhe lair value ol lhe consideralion given lo acquire
lhem al lhe lime ol lheir acquisilion. Liabililies are recorded
al lhe amounl ol proceeds received in exchange lor lhe
obligalion, or in some circumslances (lor example, income
laxes), al lhe amounls ol cash or cash equivalenls expecled
lo be paid lo salisly lhe liabilily in lhe normal course ol
business.
45
Pelaled lerm. Carrying amount
H
32
Solvency ll Clossary
Home supervisor The supervisory aulhorily which is responsible lor lhe
prudenlial supervision in lhe LU Member Slale in which lhe
insurer has oblained ils license lo perlorm ils LU insurance
aclivilies (home counlry),
46
and which is also responsible lor
lhe prudenlial supervision ol business underwrillen in olher
LU Member Slales via branches or lreedom ol services.
Pelaled lerms. Host supervisor, Lead supervisor
In EU legislation, home Member State is defned as the Member
State where the undertaking has its based offce, see Article 2(f)
2005/68/EC.
Host supervisor The supervisory aulhorily which is responsible lor lhe
prudenlial supervision in lhe LU Member Slale in which an
insurance underlaking has a subsidiary, olher lhan lhe home
Member Slale which has licensed lhe insurer lo perlorm ils
LU insurance aclivilies.
Pelaled lerms. Home supervisor, Lead supervisor
In EU legislation, host Member State is defned as the Member
State where the undertaking provides services or has a branch, see
Article 2(n) 2005/68/EC, whereas home Member State is defned as
the Member State where the undertaking has its based offce, see
Article 2(f) 2005/68/EC.
Hybrid capital Capilal lhal has lhe lorm ol a combinalion ol lwo or more
dillerenl lnancial slruclures or inslrumenls.
Examples are subordinated and deeply subordinated debt.
Hybrid capital is used to provide cheaper funding than share
capital.
H
33
CLA Croupe Consullalil
Infation risk The risk ol a change in value caused by a devialion ol lhe
aclual markel-consislenl value ol assels and/or liabililies lrom
lheir expecled value, due lo inlalion, e.g. price inlalion,
wage inlalion, elc., leading lo an unanlicipaled change in
insurance cosl and/or impacl ol an insurance conlracl, e.g.
wilh respecl lo conlracl limils.
In-force business The porllolio ol insurance conlracls which give raise lo
currenl obligalions or currenl righls.
Insolvency The poinl al which under nalional bankruplcy procedures lhe
owner looses ownership righls and/or lhe policyholders are
no longer enlilled lo lhe orderly selllemenl ol conlracls.

Insurance contract A conlracl under which one parly (lhe insurer) accepls
signilcanl insurance risk lrom anolher parly (lhe
policyholder) by agreeing lo compensale lhe policyholder
or ils benelciary il a speciled uncerlain lulure evenl (lhe
insured evenl) allecls lhe policyholder.
47
IFRS4, Appendix B provides detailed guidance on the defnition of
insurance contract.
Insurance group A group slruclure which conlains lwo or more insurers.
48
Pelaled lerms. Captive insurer, Financial conglomerate,
Financial conglomerate, Insurance entity
The structure of insurance groups may derive from an ultimate
holding company which is not an insurer. Such a holding company
can be an industrial or commercial company, another fnancial
institution (for example a bank), or a company the majority of
whose assets consist of shares in insurance companies (and/or other
regulated fnancial institutions).
49
I
34
Solvency ll Clossary
Insurance guarantee
scheme
Arrangemenls which should ensure lhal policyholders and
benelciaries are nol lell wilhoul compensalion in lhe evenl
ol lhe insolvency ol an insurance enlily.
Abbrevialion. IGS
This can either be achieved by providing reimbursement to
policyholders/benefciaries or by securing the continuation of the
insurance contracts.
In the feld of third motor liability insurance, the EU legislation
requires Member States to set up a compensation body with the
task of providing compensation, at least up to the limits of the
insurance obligation for damage to property or personal injuries
caused by an unidentifed vehicle or a vehicle for which the legal
insurance obligation has not been satisfed.
50
Insurance guarantee schemes also exist for workers compensation.
IGS can be focused on one or on multiple lines; the fnancing of
these schemes can be either private or public and can be very
diverse.
Insurance obligation An insurers conlraclual obligalions/righls under an insurance
conlracl.
5!
Pelaled lerm. Best estimate liability
Total net obligations associated with an insurance company can be
split into various parts such as policyholder obligations, obligations
arising from business and management cost of the portfolio, tax
liabilities, and debts to creditors and others, and in total rights to
policyholders (e.g. regarding premiums due or recoveries).
Liabilities can be measured net or gross of risk mitigation and
transfer contracts including reinsurance and hedging.
Amount recognized on the balance sheet to meet as liabilities to
refect obligations arising out of insurance contracts, include:
Claims liabilities (whether reported or not);
Liabilities for unearned premiums;
Liabilities for unexpired risks;
Life insurance liabilities, and;
Other liabilities related to life insurance contracts (e.g. premium
deposits, accumulated savings for unit-linked contracts,
accumulated guaranteed bonus for participating contracts,
liabilities for future bonuses for participating contracts).

I
35
CLA Croupe Consullalil
Interest rate risk The risk ol a change in value caused by a devialion ol lhe
aclual inleresl rales lrom lhe expecled inleresl rales.
Pelaled lerms. Market risk, Asset-liability mismatch risk
See. Risk Map in Appendix l.
Internal model Pisk managemenl syslem ol an insurer lor lhe analysis ol
lhe overall risk silualion ol lhe insurance underlaking, lo
quanlily risks and/or lo delermine lhe capilal requiremenl
on lhe basis ol lhe company specilc risk prolle.
Pelaled lerm. Standard formula
Within the Solvency II framework an internal model is intended to
fully or partially replace the standard formula for the calculation of
the Solvency Capital Requirement. Both quantitative and qualitative
requirements will be set by the regulator and explicit approval has
to be granted by the supervisor.
I
36
Solvency ll Clossary
Lapse The expiralion ol all righls and obligalions under an
insurance conlracl il lhe policyholder lails lo comply wilh
cerlain obligalions required lo uphold lhose, e.g. premium
paymenl.
Pelaled lerms. Lapse risk, Surrender
Typically, the insurer must receive the premium payment within a
specifed period after the due date.
Lapse risk The risks ol a change in value caused by devialions lrom lhe
aclual rale ol policy lapses lrom lheir expecled rales.
Synonym. Persistency risk
Pelaled lerms. Lapse, Surrender risk, Underwriting risk
See. Risk map in Appendix l.
Lead supervisor The supervisory aulhorily responsible lor lhe supervision ol
a lnancial group or conglomerale.
Pelaled lerms. Home supervisor, Host supervisor
Legal risk The possibilily lhal lawsuils, adverse judgemenls lrom courls,
or conlracls lhal lurn oul lo be unenlorceable, disrupl or
adversely allecl lhe operalions or condilion ol an insurer.
52
Pelaled lerms. Business risk, Operational risk
The result may lead to unplanned additional payments to
policyholders or that contracts are settled on an unfavourable basis,
e.g. unrecoverable reinsurance.
See. Risk Map in Appendix l.
Liability insurance Type ol non-lile insurance lhal provides insurance lo meel
legal obligalions lo lhird parlies arising lrom non-inlenlional
acls or wrongs, e.g. negligence by lhe insured.
Pelaled lerm. Casualty insurance
Reasons for legal obligations include bodily injury, property damage,
and professional errors.
Defned as Third party liability insurance in EU law.

L
37
CLA Croupe Consullalil
Life insurance Calegory ol insurance conlracls lor which lhe benell
paymenl is based on lhe occurrence ol dealh, disabilily, or
crilical illness ol lhe insured wilhin lhe speciled coverage
lerm, or on lhe lile slalus ol lhe insured al malurily.
Pelaled lerm. Health insurance
Life insurance offers life and/or death coverage of the insured in the
form of a single or multiple (as well regular in case of an annuity)
lump sum payments to a benefciary.
Health insurance products are often sold as a rider to a (group) life
contract. In sensu stricto these are not life insurance, because they
do not relate to the occurrence of death.
The classes of life insurance that EU insurers can write on a license
are defned in Annex I of Life Directive 2002/83/EC.
Liquidity risk The risk slemming lrom lhe lack ol markelabilily ol an
inveslmenl lhal cannol be boughl or sold quickly enough lo
prevenl or minimize a loss.
Pelaled lerm. Market risk
Liquidity risk may arise due to illiquidity of the assets held to meet
the cash fow requirements (commonly referred to as asset, market,
or trading liquidity risk), but also due to insuffcient funds being
available to meet cash fow requirements (funding liquidity risk).
From a more theoretical point of view liquidity risk on a day-to-
day basis could also be understood as a change in value due to a
deviation of the actual cash fow requirements from the expected
cash fow requirements, being the cost of being over- or under
capitalised.
See. Risk Map in Appendix l.
Longevity risk Type ol biomelric risk. A change in value caused by lhe
aclual morlalily rale being lower lhan lhe one expecled.
Pelaled lerm. Biometric risk
Longevity risk affects contracts where benefts are based upon the
likelihood of survival, i.e. annuities, pensions, pure endowments,
and specifc types of health contracts.
See. Risk Map in Appendix l.
L
38
Solvency ll Clossary
Loss given default Means lhe ralio ol lhe loss on an exposure due lo lhe delaull
ol a counlerparly lo lhe amounl oulslanding al delaull.
53
Abbrevialion. LGD
Synonyms. Loss in the event of default, Loss severity
Pelaled lerm. Probability of default
Management risk Type ol business risk. The risk associaled wilh an incompelenl
managemenl or a managemenl wilh criminal inlenlions.
54
Pelaled lerms. Business risk, Operational risk, Strategic risk
See. Risk Map in Appendix l.
Marine, aviation, and
transport insurance
Calegory ol insurance producls delned in LU law providing
coverage lor.
55

Accidenlal injury ol passengers,
All damage lo or loss ol railway rolling slock, sea, river
and canal vessels, goods in lransil and baggage, and
All liabilily arising oul ol lhe use ol ships vessels or boals
on lhe sea, lakes, rivers or canals, including carriers
liabilily.
Abbrevialion. MAT
Defned as Marine, Aviation, and Transport insurance in EU law.
For more details see Annex A and B(a) of First Council Non-Life
Directive 73/239/EEC and consecutive amending directives.
Market-consistent
valuation
The praclise ol valuing assels and liabililies on markel values
where observable wilh a given qualily (mark-lo-markel),
where nol, on markel-consislenl valualion lechniques
(mark-lo-model).
Pelaled lerms. Market value, Mark-to-market valuation, Mark-
to-model valuation
L, M
39
CLA Croupe Consullalil
Market discipline The crealion ol disciplining pressure lhrough lhe publicalion
ol lnancial inlormalion and olher inlormalion aboul
lhe insurers aclivilies lo lhe public, somelimes only lo
policyholders, providing lransparency, hence allowing markel
parlicipanls and policyholders lo assess key organisalional
and producl inlormalion.
56
Disclosure requirements and recommendations may either be
imposed by the responsible supervisory authority or based on the
insurers own initiatives.
Market discipline serves to ensure that insurers display a fair attitude
towards policyholders and provide fnancial transparency toward
market participants.
57
Market risk The risk ol changes in values caused by markel prices or
volalililies ol markel prices dillering lrom lheir expecled
values.
Pelaled lerm. Asset-liability management
See. Risk Map in Appendix l.
Market value The amounl lor which an assel could be exchanged or a
liabilily sellled, belween knowledgeable, willing parlies in
an arms lenglh lransaclion,
58
based on observable prices
wilhin an aclive, deep and liquid markel which is available
lo and generally used by lhe enlily.
Abbrevialion. MV
Pelaled lerms. Arms length transaction, Fair value, Market-
consistent valuation
Fair value is a similar concept to market value, but the fair value may
be a mark-to-model price if no actual market price for asset/liability
exists.
M
40
Solvency ll Clossary
Market value margin The measuremenl allribule lor delermining lhe risk margin in
a markel consislenl measuremenl ol an insurance obligalion
or assel relecling lhe price charged by markel parlicipanls
lor accepling lhe devialion risk inherenl in a cash low.
Abbrevialion. MVM
Pelaled lerms. Best estimate liability, Fair value, Market-
consistent valuation, Market value
Under the cost of capital approach the MVM is to be approximated
as the present value of the cost of capital for all future Solvency
Capital Requirements or economic capital requirements which will
have to be put up during the entire run-off of the portfolio of assets
and liabilities for the risks of the in-force book of business.
59
Mark-to-market
valuation
The praclice ol valuing insurance righls and obligalions,
or more broadly securily and lnancial inslrumenls, using
currenl markel prices.
60
Pelaled lerms. Mark-to-model valuation, Market-consistent
valuation
Mark-to-model
valuation
The praclice ol valuing insurance righls and obligalions, or
more broadly securily and lnancial inslrumenls
6!
based on
modelling.
Pelaled lerm. Market-consistent valuation
Mark-to-model valuing is often based on benchmarking,
extrapolation or other forms of calculation based on current and
market-consistent parameters, if case any such form of modelling
can be applied.
62
Migration risk The risk ol a change in value caused by a devialion ol lhe
aclual probabilily ol a lulure delaull by an obligor lrom lhe
expecled probabilily ol lulure delaull, adversely allecling
lhe presenl value ol lhe conlracl wilh lhe obligor loday.
63
Pelaled lerm. Credit risk
Minimum Capital
Requirement
The capilal level represenling lhe lnal lhreshold lhal
lriggers ullimale supervisory measures in lhe evenl lhal il
is breached.
Abbrevialion. MCR
Pelaled lerm. Solvency Capital Requirement
M
4!
CLA Croupe Consullalil
Mispricing risk Term used lo describe lhe lacl lhal lor a range ol reasons
premiums may lurn oul lo be loo low lo cover lhe
insurers expenses relaled lo claims, claims handling, and
adminislralion.
64
Synonym. Pricing risk
Pelaled lerm. Underwriting risk
Mispricing risk is not depicted in the risk map of Appendix I, because
it is no unique source of risk.
Model risk The risk lhal a model is nol giving correcl oulpul due lo a
misspecilcalion or a misuse ol lhe model.
Pelaled lerm. Parameter uncertainty risk
See. Risk Map in Appendix l.
Possible sources of model risk include, but are not restricted to:
The use of an inappropriate model;
The inappropriate use and implementation ofmodels;
The selection of inappropriate models;
Errors within the models or the estimated parameters;
Insuffcient or incorrect data.
Correct model choice given the information available, but a deviation
of reality from the model at a later stage.
Morbidity risk Type ol biomelric risk. A change ol value caused by lhe
aclual disabilily and illness rales ol lhe persons insured
devialing lrom lhe ones expecled.
Pelaled lerms. Biometric risk, Disability risk
Morbidity risk is generally considered as to only relate to insurance
cover for losses other than loss of income, i.e. medical expenses,
contrary to disability risk.
An increase in the frequency of an insured becoming disabled or ill
may for example result in higher claim patterns than charged for in
the premiums.
It affects health insurance contracts where payments are paid for
insured types of disability and/or illness.
See. Risk Map in Appendix l.
M
42
Solvency ll Clossary
Mortality risk Type ol biomelric risk. A change in value caused by lhe
aclual morlalily rale being higher lhan lhe one expecled.
Pelaled lerms. Biometric risk, Longevity risk
An increase in the frequency of the death of insured persons may
for example result in higher claim patterns than charged for in the
premiums.
Mortality risk affects all life insurance contracts and those health
insurance contracts where claims depend upon the death of the
insured.
See. Risk Map in Appendix l.
Motor insurance A generic lerm relerring lo all lypes ol insurance
indemnilying lor lhird parly liabilily, legal liabilily lor bodily
injury, and damage lo properly ol olhers, arising oul ol
ownership or operalion ol a molorised vehicle
65
(compulsory
cover as in LU Direclives), and/or olher losses arising oul ol
lhe ownership, or operalion ol a molorised vehicle by lhe
insured (comprehensive cover).
Pelaled lerm. Liability insurance
Defned as Motor third party liability insurance and Motor other
classes in EU law. For more details see Annex A and B(a) of First
Council Non-Life Directive 73/239/EEC and consecutive amending
directives.
M
43
CLA Croupe Consullalil
Non-diversifable risk
See. Systematic risk
Non-life insurance Ceneric lerm used lo reler lo all lypes ol insurance business
olher lhan Lile insurance, including lor example Properly
insurance, Liabilily insurance, Molor insurance, Accidenl
insurance, and Heallh insurance.
Synonym. General insurance
Pelaled lerms. Life insurance, Health insurance
In Anglo-Saxon countries the term General insurance is commonly
used.
Offcial term used in EU law to refer to specifed classes of insurance
defned in First Council Directive 73/239/EEC and amended in
consecutive Non-life Directives.
Operational risk Pisk ol a change in value caused by lhe lacl lhal aclual
losses, incurred lor inadequale or lailed inlernal processes,
people and syslems, or lrom exlernal evenls (including legal
risk), diller lrom lhe expecled losses.
66

Pelaled lerms. Business risk, Compliance risk, Expense risk,
Legal risk, Management risk, Model risk, Reputational risk,
Strategic risk
Operational risks relate to operational loss events caused by internal
or external reasons, excluding all fnancial risks that a company has
taken on in the expectation of a fnancial return.
See. Risk Map in Appendix l.
Option A conlracl lealure lhal gives a parly ol a conlracl lhe righl
(or polenlial righl) lo allecl lhe discrelionary nel cash lows
under lhe conlracl
67
under condilions and limilalions ol lhe
discrelion as oullined in lhe conlracl.
It involves a right granted by the insurer to the policyholder to
exercise a particular choice related to a specifc product; the product
in which the option is embedded. The option may be exercisable by
the policyholder at certain pre-specifed points in time and under
particular circumstances. It may be exercised automatically or may
require an explicit decision by the policyholder.
Most options are conversion features granted to the buyer or early
termination options reserved by the issuer of a security, but there
are also options for management decisions of the insurer.
N, O
44
Solvency ll Clossary
Parameter uncertainty
risk
A change ol value caused by lhe uncerlainly in lhe eslimalion
ol lhe parameler values applied in a model.
Pelaled lerms. Model risk, Operational risk
Possible sources of parameter uncertainty risk include, but are not
restricted to:
68
The number of observations on which best estimates are based
is limited because the observation period is too short;
The volatility of the observations makes estimation less certain;
The period over which the observations were made may not
include certain calamitous events that, in fact, should be
refected in the parameters of the distribution;
The observations contain contaminated data.
The observed population differs from the one being
underwritten;
There is an uncertainty for long-term insurance in projection of
the parameters (diagnosis versus forecasting).
See. Risk Map in Appendix l.
Parent company A company lhal conlrols subsidiaries lhrough parlial or lull
slock ownership or some olher lnancial or legal conneclion,
or lhal in lhe opinion ol lhe compelenl aulhorilies, elleclively
exercises a dominanl inluence over anolher underlaking.
69
Synonym. Parent undertaking
Related legal EU term is Parent undertaking defned in Article
2.9 of Directive 2002/87/EC on the supplementary supervision of
fnancial conglomerates and Article 1 of Seventh Council Directive
83/349/EEC.
Pension scheme A conlracl, an agreemenl, a lrusl deed, or rules slipulaling
which reliremenl benells are granled and under which
condilions.
70
Pelaled lerms. Annuity, Life insurance
Percentile approach
See. Quantile approach
P
45
CLA Croupe Consullalil
Performance linked
beneft
A conlraclual benell sharing lhe policyholder in lhe
perlormance ol lhe insurer, i.e. lhe surplus under a group
ol conlracls or lhe surplus ol lhe enlire enlily, achieved
aller providing lhe guaranleed benells, aller making lhe
relaled inlernal expenses as a resull ol received guaranleed
premiums, and laking inlo accounl lhe inveslmenl income.
Contracts can limit the surplus in which policyholders share, can
determine to which extent they share in those surplus, and when
and by which means the policyholders share in surplus is benefted
to individual policyholders. Contracts often grant insurers a certain
discretion in that process.
There are various methods for deciding how profts are shared.
Permanent capital lnslrumenls lhal have no end-dale and are available
indelnilely lo absorb losses in delned circumslances.
7!
Pelaled lerm. Available solvency margin
Persistency risk
See. Lapse risk
Premium risk
See. Claims risk
Pricing risk
See. Mispricing risk
Probability of default Pisk measure. The likelihood lhal a counlerparly will nol
repay conlraclual obligalions according lo lhe agreemenl.
Abbrevialion. PD
Pelaled lerm. Loss given default
The probability of default is typically specifed in terms of a one year
period,
72
but may also relate to a longer or shorter period.
Probability of ruin Pisk measure. The likelihood lhal lolal nel cash oullows
exceed al any lime lhe available resources slarling wilh a
given amounl ol resources, wilhin a speciled lime horizon.
Synonym. Ruin probability
P
46
Solvency ll Clossary
Procyclicality The cumulalive pressure on a larger number ol inslilulions
lo sell assels or raise capilal al lhe same lime, due lo lhe
Solvency Capilal Pequiremenls and lhereby polenlially
causing more exlreme markel movemenls lhan would
olherwise be lhe case.
73

In addition, this causes sales to occur at inopportune times, i.e.
when the achieved returns are such that in a cascade reaction even
more assets need to be sold, with the consequence that a major
impact on the entire industry is possible.
Product design risk Ceneric lerm used lo describe lhe lacl lhal an insurer may
lace a risk exposure under ils insurance conlracls lhal was
unanlicipaled in lhe design and pricing ol lhe insurance
conlracl.
74
Pelaled lerm. Underwriting risk
Product design risk is not depicted in the risk map of Appendix I,
because it is no unique source of risk. It contains pricing risk and
legal risk, to some extent as well operational risk and the risk, that
the product is not successful in the market.
Property and casualty
insurance
See. Casualty insurance, Property insurance
Property insurance A generic lerm used lo describe all non-lile insurance
producls lhal can prolecl an insured againsl loss ol, or
damage lo, properly lor speciled peril(s).
75

Pelaled lerm. Casualty insurance
Defned as Insurance against Fire and other Damage to Property in
EU law. For more details see Annex A and B(a) of First Council Non-
Life Directive 73/239/EEC and consecutive amending directives.
Provision The amounl needed under a cerlain measuremenl ol a
presenl obligalion lo meel lhal obligalion adequalely.
The term technical provision is a part of the provision separated for
presentation purposes, referring to parts subject to uncertainty.
P
47
CLA Croupe Consullalil
Prudential flter Pegulalory requiremenls applied lo lhe measuremenl ol
righls and obligalions under insurance conlracls and capilal
obligalions ol lhe insurer which resull in dillerences lo lhe
values shown in public lnancial reporling.
76

They are applied for prudential reporting purposes to ensure
that the capital is suitably quantifed to meet the specifc aims of
prudential supervision,
77
i.e. adjusting the measurement from the
intend to represent the net obligations faithfully to the intend to
meet them adequately.
Prudent person
approach
A principle which guides assel managemenl by requiring lhe
manager lo invesl as a prudenl person would do.
Synonym. Prudent man approach
Pure endowment
insurance
lnsurance payable lo lhe benelciary il lhe policyholder is
alive al lhe malurily dale slaled in lhe policy.
Pelaled lerms. Endowment insurance, Life insurance
Quantile approach Approach lo delne a risk margin above besl eslimale
liabililies in lerms ol a conldence level. ll delnes a risk
margin as lhe dillerence belween lhe slaled quanlile ol
lhe applicable probabilily dislribulion (value al risk) and lhe
mean ol lhal dislribulion.
Synonym. Percentile approach
Pelaled lerms. Confdence level, Cost of capital approach, Risk
margin, Value-at-Risk
As this can, for low quantiles and/or skew distributions, lead to
negative risk margins, a supplementary rule is needed if the resulting
risk margin is always to be positive.
P, Q
48
Solvency ll Clossary
Rating agency driven
capital
Amounl ol capilal lhe raling agencies expecl lhe company
lo hold lor a given raling.
It is designed to test and communicate capital adequacy warranting
the target debt rating based on the rating agency metrics and
models.
78
Real-estate risk The risk ol a change in value caused by a devialion ol lhe
aclual values ol real-eslale securilies and/or income lrom
real-eslale securilies, lrom lheir expecled values.
79
Pelaled lerm. Equity risk
See. Risk Map in Appendix l.
Regulatory capital
See. Minimum Capital Requirement, Solvency Capital
Requirement
Regulatory surplus
See. Surplus capital
Reinsurance Type ol risk miligalion on lhe basis ol an insurance conlracl
belween one insurer or pure reinsurer (lhe reinsurer) and
anolher insurer or pure insurer (lhe cedanl), lo indemnily
againsl losses, parlially or lully, on one or more conlracls
issued by lhe cedanl in exchange lor a consideralion (lhe
premium).
80
Reinsurance
counterparty risk
See. Credit risk
Reinvestment risk Pisk ol a change in value caused by a devialion ol lhe aclual
relurn on inveslmenl lor lunds lo be reinvesled, lrom lhe
expecled relurn on inveslmenl ol lhese lunds.
8!
Pelaled lerm. Market risk
Reputational risk Type ol business risk. The risk lhal adverse publicily
regarding an insurers business praclices and associalions,
whelher accurale or nol, will cause a loss ol conldence in
lhe inlegrily ol lhe inslilulion.
82

Pelaled lerm. Operational risk
Reputational risk could arise from other risks inherent in an
organisations activities. The risk of loss of confdence relates
to stakeholders, which include, inter alia, existing and potential
customers, investors, suppliers, and supervisors.
83
See. Risk Map in Appendix l.
R
49
CLA Croupe Consullalil
Required economic
capital
The lolal ol assels measured al markel-consislenl value,
inlernally required by an insurer above lhe markel-
consislenl value ol obligalions, in order lo reduce lhe risk
ol nol meeling lhe obligalions lo a delned risk measure
(e.g. VaP, TVaP, LPD), and wilhin a delned lime period (e.g.
one year).
Pelaled lerm. Available economic capital
Reserve risk
See. Claims risk
Risk margin A generic lerm, represenling lhe value ol lhe devialion risk
ol lhe aclual oulcome compared wilh lhe besl eslimale,
expressed in lerms ol a delned risk measure
Pelaled lerms. Market value margin, Quantile approach
The term risk margin in the context of Solvency II refers to the
amount above the best estimate liability.
Run-off basis A melhod ol considering lhe lnancial silualion assuming
lhal no new business will be wrillen, bul lhal lhe company
will conlinue lo operale wilh in-lorce business unlil lhe end
ol lhe lerm sel by lhe policy condilions (e.g. lhe renewal
dale, lhe end ol a lxed lerm, dealh ol lhe insured person),
including lhe sellling ol claims evenlually arising during lhis
period.
84
Pelaled lerms. Break-up basis, Going concern basis
R
50
Solvency ll Clossary
Scenario analysis Simulalion ol an allernalive sel ol paramelers wilhin a
model in order lo eslablish lhe impacl on lhe oulcome.
The lollowing lypes ol scenarios analysis can be dislin-
guished.
Hislorical scenarios,
Hypolhelical scenarios,
One-oll evenls (e.g. simulalion ol slralegic decisions).
Synonym. Scenario testing
Pelaled lerms. Sensitivity test, Stress test
Sensitivity test A simulalion designed lo lesl lhe robuslness ol a relalionship
or projeclion, given various changes in lhe underlying
assumplions.
Pelaled lerms. Scenario analysis, Stress test
A sensitivity test estimates the impact of one or more small moves
in a particular risk factor, or a small number of closely linked risk
factors.
Settlement risk The risk ol a change ol value due lo a devialion lrom lhe besl
eslimale ol lhe lime-lag belween lhe value and selllemenl
dales ol securilies lransaclions.
85
Pelaled lerm. Credit risk
Solvency Capital
Requirement
The amounl ol capilal lo be held by an insurer lo meel lhe
Pillar l requiremenls under lhe Solvency ll regime.
Abbrevialion. SCR
Pelaled lerms. Adjusted Solvency Capital Requirement,
Minimum Capital Requirement
It is expected that the SCR may be derived using either an approved
internal model or the standard formula.
Solvency margin
This term is used in the current Directives but will no longer be
used under Solvency II and will be replaced by Solvency Capital
Requirement and Minimum Capital Requirement.
Spread risk The risk ol a change in value due lo a devialion ol lhe aclual
markel price ol credil risk lrom lhe expecled price ol credil
risk.
Pelaled lerm. Market risk
See. Risk Map in Appendix l
S
5!
CLA Croupe Consullalil
Standard formula ln lhe conlexl ol lhe Solvency ll regime, a sel ol calculalions
prescribed by lhe regulalor lor generaling lhe Solvency
Capilal Pequiremenl.
Pelaled lerm. Internal model
The standard formula is intended to be able to be used by a very
wide range of undertakings.
Strategic risk Type ol business risk. The risk ol a change in value due lo
lhe inabilily lo implemenl appropriale business plans and
slralegies, make decisions, allocale resources, or adapl lo
changes in lhe business environmenl.
86

Pelaled lerms. Business risk, Management risk, Operational
risk
See. Risk Map in Appendix l
Stress test A lype ol scenario analysis in which lhe change in paramelers
are considered signilcanl, or even exlreme.
Abbrevialion. ST
Pelaled lerms. Scenario analysis, Sensitivity test
Supervisory ladder ln lhe conlexl ol Solvency ll, describes lhe scale ol conlrol
levels and accompanying supervisory measures lor capilal
levels belween lhe Solvency Capilal Pequiremenl and lhe
Minimum Capilal Pequiremenl.
87
Supervisory review
process
ln lhe conlexl ol Solvency ll, describes lhe process lhal
enables lhe supervisory aulhorily lo evaluale, on an ongoing
basis, il lhe underlaking lullls all relevanl regulalory
requiremenls.
Abbrevialion. SRP
Surety business An obligalion underlaken (a surely bond or guaranlee) by
one parly (lhe surely) lo anolher parly (lhe benelciary),
lo ensure lhe lulllmenl ol conlraclual, legal, or regulalory
obligalions by a lhird parly (lhe principal) up lo lhe bond
limil.
Pelaled lerm. Credit insurance
S
52
Solvency ll Clossary
Surplus capital Term commonly used lo reler lo lhal parl ol lhe available
solvency margin lhal is held by an insurer in excess ol lhe
Solvency Capilal Pequiremenl.
Synonyms. Excess capital, Regulatory surplus
Pelaled lerms. Available solvency margin, Solvency Capital
Requirement
Surrender The lerminalion ol an insurance conlracl by lhe
policyholder.
Pelaled lerms. Lapse, Surrender risk
The insurer pays the policyholder or its benefciary the cash value
which is contractually agreed or legally prescribed.
Surrender risk The risk ol a change in lhe value ol an insurance policy
caused by a devialion ol lhe aclual surrenders (premalure
lerminalions) lrom lhe expecled surrenders, i.e. lhose
assumed in lhe valualion, due lo lull repurchase, parlial
repurchase, premium reduclion, conversion lo paid-up
policy slalus or lransler.
Pelaled lerms. Lapse risk, Surrender
Though driven by the same risk driver, i.e. the potential premature
termination of an insurance contract, surrender risk is different from
lapse risk because it relates to the change in value that is caused
by the premature termination of contracts with a surrender value,
while lapse only relates to the premature termination of contracts
without a surrender value.
See. Risk Map in Appendix l.
Systematic risk Any risk inherenl lo lhe enlire markel or enlire markel
segmenl which cannol be miligaled lhrough diversilcalion.
Synonym. Non-diversifable risk
Pelaled lerm. Hedgeable risk
Also known as non-diversifable risks (as measured by an assets
beta), contrary to idiosyncratic risks.
S
53
CLA Croupe Consullalil
Systemic risk The risk ol experiencing syslemic evenls which may lead lo
lhe lailure ol inslilulions, markels or lnancial syslems.
88
Pelaled lerm. Contagion
The spectrum of systemic risk ranges from the second-round effect
on a single institution or market to the risk of having a systemic
crisis affecting most of the (or even the whole) fnancial system.
The geographical reach of systemic risk can be regional, national
or international.
89
S
54
Solvency ll Clossary
Tail-Value-at-Risk A coherenl risk measure. lor a given conldence level !-
il measures lhe average losses over lhe delned lhreshold
(lypically sel as lhe VaP lor a given quanlile), i.e. lhe
condilioned mean value, given lhal lhe loss exceeds lhe !-
percenlile.
Abbrevialions. TVaR, TailVaR
Synonym. Expected shortfall
Pelaled lerm. Value-at-Risk
Target capital Term lormerly used in lhe inilial papers ol lhe Commission
Services, bul no longer used and changed inlo Solvency
Capilal Pequiremenl.
90
Technical provision
See. Insurance obligation, Provision
Technical risk
See. Underwriting risk
Term insurance lnsurance payable lo a benelciary upon lhe dealh ol lhe
insured, provided dealh occurs wilhin lhe lerm ol lhe
conlracl.
9!
Synonym. Term life insurance
Pelaled lerm. Life insurance
Term products are often sold as a rider or linked to another product,
e.g. a mortgage or investment product.
Time horizon The period over which any amounl ol required capilal, e.g.
Solvency Capilal Pequiremenl, is held in order lo cover
losses, wilhin a given risk lolerance level.
The time horizon for the SCR is set at one year and the confdence
level will be set accordingly.
Total balance sheet
approach
Principle which slales lhal lhe delerminalion ol an insurers
capilal lhal is available and needed lor solvency purposes
should be based upon all assels and liabililies, as measured
in lhe regulalory balance sheel ol lhe insurer, and lhe way
lhey inleracl. T
55
CLA Croupe Consullalil
Underwriting risk The risk ol a change in value due lo a devialion ol lhe
aclual claims paymenls lrom lhe expecled amounl ol claims
paymenls (including expenses).
Pelaled lerms. Biometric risk, Expense risk, Lapse risk, Claims
risk, Surrender risk
Total underwriting risk for non-life insurance includes the total of
claims risk and expense risk for claims. For life insurance it includes
the total of lapse, surrender, and biometric risks, as well as expense
risk for claims.
See. Risk Map in Appendix l.
Unexpected loss
(only for credit risk)
See lerm. Credit risk
Unit-linked contract A conlracl, under which benells are delermined based on
lhe lair value ol unils ol a mulual lund. The benell relecls
lhe lair value ol a specilc number ol unils, which is eilher
conlraclually delermined as a lxed number, or derived lrom
olher evenls under lhe conlracl, e.g. premium paymenls
associaled wilh a specilc addilional number ol unils
based on lhe lair value ol lhe unils al lhe lime ol premium
paymenl.
In some cases additional guarantees can be given, e.g. minimum
guaranteed maturity benefts, term insurance, etc.
The investment risk is borne by the policyholder.
Other forms are index-linkage, where the linked items are of such a
kind, that the insurer is able to match entirely, or investment-linkage,
where the contract does not refer to the fair value of units but to the
fair value of assets in a portfolio. Performance-linked contracts refer
to the returns recognized under a specifc measurement approach
from that portfolio or other performance of the insurer as actually
occurred or recognized.
Universal life insurance A lexible premium lile insurance policy, resembling a savings
accounl combined wilh a lerm insurance lunded lrom lhe
savings accounl, under which lhe policyholder may change
lhe dealh benell lrom lime lo lime (wilh salislaclory
evidence ol insurabilily lor increases) and vary lhe premium
paymenls.
92
Pelaled lerm. Life insurance
U
56
Solvency ll Clossary
Value-at-Risk Value-al-risk is a quanlile ol a dislribulion and used as a
(non-coherenl) risk measure.
Abbrevialion. VaR
Pelaled lerm. Tail-Value-at-Risk
For example, if the twelve month value-at-risk with a 95%
confdence level ( = 0,05) represents the amount of one million
Euro, this means that an insurer would only expect to lose more
than one million Euro once in 20 years (1/).
93
Value of in-force
business
The value ol lulure dislribulable posl-lax prolls, expecled
lo emerge on business already wrillen (including renewals),
i.e. lhe in-lorce business. Vll excludes any value associaled
wilh lulure new conlracls lhal have nol yel been wrillen.
Abbrevialion. VIF
Pelaled lerms. Embedded value, European embedded value,
In-force business
VIF is calculated using current actuarial, economic and operational
assumptions and is part of the embedded value.
94
V
57
CLA Croupe Consullalil
Whole life insurance lnsurance payable lo a benelciary upon dealh ol lhe insured
whenever lhal occurs. premiums may be payable lor a
speciled number ol years (limiled paymenl lile) or lor lile
(slraighl lile).
95
Whole life products typically provide level death benefts and vary
mainly with respect to the period over which premiums are paid,
varying from single premium to full lifetime premium payments.
96
With-proft product
See. Performance linked beneft
Workers compensation
insurance
lnsurance cover lor lhe cosl ol medical care and rehabililalion
lor workers injured on lhe job, during lhe way lo and lrom
lhe job, or lo work relaled diseases.
Pelaled lerms. Disability insurance, Health insurance, Life
insurance
Workers compensation insurance also compensates for wage loss
and provides disability or death benefts for benefciaries if the
insured person is killed or injured in work-related accidents.
W
58
Solvency ll Clossary
Notes
!
8ased on lAlS (2006) Clossary ol lerms, March 2006.
2
8ased on Luropean Commission (2000) APT Markel Sludy, linal Peporl, Oclober
2000.
3
8ased on Luropean Commission (2000) APT Markel Sludy, linal Peporl, Oclober
2000.
4
8ased on Luropean Commission (2000) APT Markel Sludy, linal Peporl, Oclober
2000.
5
The delnilion applies lo annuily producls wilhin lhe LU, nol per delnilion lo US
producls in ils enlirely.
6
8ased on lAlS (2006) Clossary ol lerms, March 2006.
7
8ased on lAlS (2006) Clossary ol lerms, March 2006.
8
Nole lrom ClO lorum (2006) Llaboraled principles lor an llPS Phase ll lnsurance
Accounling Model, 22 June 2006.
9
Nole lrom ClO lorum (2006) Llaboraled principles lor an llPS Phase ll lnsurance
Accounling Model, 22 June 2006.
!0
Delnilion ol Ceneral business risk in lAlS (2006) Clossary ol lerms, March 2006.
!!
lAlS (2006) Clossary ol lerms, March 2006.
!2
Nole lrom lAlS (2005) Supervisory Slandard on Suilable lorms ol Capilal, Pevised
Drall, !3 July 2005.
!3
Nole lrom lAS8 (2005) lnlernalional linancial Peporling Slandards, lramework lor
lhe Preparalion and Presenlalion ol linancial Slalemenls (l), January 2005.
!4
8ased on lAlS (2006) Clossary ol lerms, March 2006.
!5
8ased on 8lS, Commillee on 8anking Supervision (2005) Compliance and lhe
compliance lunclion in banks, April 2005.
!6
Swiss Pe (200!) The Lconomics ol lnsurance, How insurers creale value lor
shareholders, 200!, pp. 39.
!7
lAlS (2006) Clossary ol lerms, March 2006.
!8
8ased on lAlS (2006) Clossary ol lerms, March 2006.
!9
8ased on Luropean Parliamenl and Council (2004) Capilal Pequiremenls Direclive,
COM (2004) 486 lnal, July 2004.
20
Drall delnilion. lAS8 (2006) lnsurance conlracls (phase ll). Summary ol possible
accounling approaches (Agenda Paper !0D), lnlormalion lor Observers, lebruary
2006.
2!
Nole lrom lAS8 (2006) lnsurance conlracls (phase ll). Summary ol possible accounling
approaches (Agenda Paper !0D), lnlormalion lor Observers, lebruary 2006.
22
Nole lrom lAS8 (2006) lnsurance conlracls (phase ll). Summary ol possible accounling
approaches (Agenda Paper !0D), lnlormalion lor Observers, lebruary 2006.
23
Drall delnilion. lAS8 (2006) lnsurance conlracls (phase ll). Summary ol possible
accounling approaches (Agenda Paper !0D), lnlormalion lor Observers, lebruary
2006.
59
CLA Croupe Consullalil
24
Nole lrom lAS8 (2006) lnsurance conlracls (phase ll). Summary ol possible accounling
approaches (Agenda Paper !0D), lnlormalion lor Observers, lebruary 2006.
25
lAlS (2006) Clossary ol lerms, March 2006.
26
8ased on delnilion Disabilily income insurance in lAlS (2006) Clossary ol lerms,
March 2006.
27
8ased on 8lS (!999) Capilal Adequacy Principles Paper, lebruary !999.
28
Noles based on 8lS (!999) Capilal Adequacy Principles Paper, lebruary !999.
29
8ased on ClO lorum (2005) Lmbedded Values, An educalional session prepared by
lhe ClO lorum lor lhe lnsurance Working Croup, Seplember 2005.
30
8ased on ClO lorum (2005) Lmbedded Values, An educalional session prepared by
lhe ClO lorum lor lhe lnsurance Working Croup, Seplember 2005.
3!
8ased on lAlS (2006) Clossary ol lerms, March 2006.
32
8ased on delnilion lor Lquily and Peal-eslale risk in lAlS (2006) Clossary ol lerms,
March 2006.
33
lAS8 (2005) lnlernalional linancial Peporling Slandards, lramework lor lhe
Preparalion and Presenlalion ol linancial Slalemenls (l), January 2005.
34
8ased on Arlicles 2(!4) and 3 ol Luropean Commission and Parliamenl (2002)
linancial Conglomerale Direclive, Direclive 2002/87/LC, December 2002.
35
8ased on Arlicle 2(!2) ol Luropean Commission and Parliamenl (2002) linancial
Conglomerale Direclive, Direclive 2002/87/LC, December 2002. Condilions lor
organisalions linked lo each olher by a relalionship are delned in Arlicle !2(!) ol
Sevenlh Council Direclive 83/349/LLC ol !3 June !983 based on lhe Arlicle 54(3)(g)
ol lhe Trealy on consolidaled accounls.
36
Nole lrom delnilion Currency risk in lAlS (2006) Clossary ol lerms, March 2006.
37
Nole based on CPO lorum (2005) Principles lor Pegulalory Admissibilily ol lnlernal
Models, !0 June 2005.
38
KPMC (200!) The Soulh Alrican insurance induslry, a glossary ol lerms, 2nd
edilion.
39
KPMC (200!) The Soulh Alrican insurance induslry, a glossary ol lerms, 2nd
edilion.
40
8ased on lAlS (2006) Clossary ol lerms, March 2006.
4!
Luropean Commission, DC lnlernal Markel (2004) llPS4, lnsurance Conlracls,
Appendix A, Commission Pegulalion No 2236/2004.
42
8ased on Luropean Commission, DC lnlernal Markel (2004) llPS4, lnsurance
Conlracls, Appendix A, Commission Pegulalion No 2236/2004.
43
8ased on lAlS (2006) Clossary ol lerms, March 2006.
44
Nole based on CLA CPO lorum (2006) Solulions lo major issues lor Solvency ll
Joinl submission by lhe CPO lorum and CLA, !7 lebruary 2006.
45
lAS8 (2005) lnlernalional linancial Peporling Slandards, lramework lor lhe
Preparalion and Presenlalion ol linancial Slalemenls (l), January 2005.
46
8ased on Luropean Parliamenl and Council (200!) Direclive 200!/!7/LC, on lhe
reorganisalion and winding-up ol insurance underlakings, !9 March 200!.
60
Solvency ll Clossary
47
Adapled lrom Luropean Commission, DC lnlernal Markel (2004) llPS4, lnsurance
Conlracls, Appendix A, Commission Pegulalion No 2236/2004.
48
lAlS (2006) Clossary ol lerms, March 2006.
49
8ased on lAlS (2006) Clossary ol lerms, March 2006.
50
Nole lrom The Council ol lhe Luropean Communilies (!983) Second Council
Direclive 84/5/LLC, on lhe approximalion ol lhe laws ol lhe Member Slales relaling
lo insurance againsl civil liabilily in respecl ol lhe use ol molor vehicles, 30 December
!983.
5!
Adapled lrom lhe delnilion ol lnsurance liabilily in Luropean Commission, DC
lnlernal Markel (2004) llPS4, lnsurance Conlracls, Appendix A, Commission
Pegulalion No 2236/2004.
52
lAlS (2006) Clossary ol lerms, March 2006.
53
Luropean Parliamenl and Council (2004) Capilal Pequiremenls Direclive, COM
(2004) 486 lnal, July 2004.
54
8ased on lAlS (2006) Clossary ol lerms, March 2006.
55
8ased on Luropean Council (!973) lirsl Non-Lile Direclive 73/239/LLC, on lhe
coordinalion ol laws, regulalions and adminislralive provisions relaling lo lhe laking-
up and pursuil ol lhe business ol direcl insurance olher lhan lile assurance, 24 July
!973.
56
8ased on Luropean Commission, lnlernal Markel DC (2002) MAPKT2535-02
Consideralions on lhe design ol a lulure prudenlial supervisory syslem, 28 November
2002.
57
Noles based on Luropean Commission, lnlernal Markel DC (2002) MAPKT2535-02
Consideralions on lhe design ol a lulure prudenlial supervisory syslem, 28 November
2002.
58
8ased on delnilion lair value lrom lAS8 (2005) lnlernalional linancial Peporling
Slandards, lramework lor lhe Preparalion and Presenlalion ol linancial Slalemenls
(l), January 2005.
59
8ased on lOPl (2006) The Swiss Lxperience wilh Markel Consislenl Technical
Provisions - lhe Cosl ol Capilal Approach, lebruary 24.
60
8ased on delnilion lor Marking lo markel in 8lS Commillee on Paymenl and
Selllemenl Syslems (2003) A glossary ol lerms used in paymenls and selllemenl
syslems, March 2003.
6!
8ased on 8lS Commillee on Paymenl and Selllemenl Syslems (2003) A glossary ol
lerms used in paymenls and selllemenl syslems, March 2003.
62
8ased on 8lS (2004) lnlernalional Convergence ol Capilal Measuremenl and Capilal
Slandards, A Pevised lramework, June 2004.
63
8ased on delnilion lor Downgrade or migralion risk in lAlS (2006) Clossary ol lerms,
March 2006.
64
8ased on lAlS (2006) Clossary ol lerms, March 2006.
65
8ased on delnilion Aulomobile liabilily insurance in lAlS (2006) Clossary ol lerms,
March 2006.
6!
CLA Croupe Consullalil
66
8ased on Luropean Parliamenl and Council (2004) Capilal Pequiremenls Direclive,
COM (2004) 486 lnal, July 2004.
67
8ased on lAA (2005) Clossary lnlernalional Acluarial Slandards ol Praclice Pegarding
lnlernalional linancial Peporling Slandards, !6 June 2005.
68
8ased on lAA (2004) Clobal lramework lor lnsurer Solvency Assessmenl, A Peporl
by lhe lnsurer Solvency Assessmenl Working Parly ol lhe lnlernalional Acluarial
Associalions, 2004.
69
8ased on Arlicle 2.9 ol Luropean Parliamenl and Council (2002) Direclive 2002/87/
LC, on lhe supplemenlary supervision ol credil inslilulions, insurance underlakings
and inveslmenl lrms in a lnancial conglomerale, !6 December 2002.
70
Luropean Commission and Council (2003) Direclive 2003/4!/LC, On lhe Aclivilies
and Supervision ol lnslilulions lor Occupalional Peliremenl Provision, June 2003.
7!
8ased on lAlS (2005) Supervisory Slandard on Suilable lorms ol Capilal, Pevised
Drall, July 2005.
72
Luropean Parliamenl and Council (2004) Capilal Pequiremenls Direclive, COM
(2004) 486 lnal, July 2004.
73
8ased on CLlOPS (2005) Specilc Calls lor Advice lrom CLlOPS, April 2005.
74
8ased on lAA (2004) A Clobal lramework lor lnsurer Solvency Assessmenl, A Peporl
by lhe lnsurer Solvency Assessmenl Working Parly ol lhe lnlernalional Acluarial
Associalion, 2004.
75
8ased on Luropean Council (!973) lirsl Non-Lile Direclive 73/239/LLC, on lhe
coordinalion ol laws, regulalions and adminislralive provisions relaling lo lhe laking-
up and pursuil ol lhe business ol direcl insurance olher lhan lile assurance, 24 July
!973.
76
lAlS (2005) Supervisory Slandard on Suilable lorms ol Capilal, Pevised Drall, July
2005.
77
lAlS (2005) Supervisory Slandard on Suilable lorms ol Capilal, Pevised Drall, July
2005.
78
CLA MOW 2005 (2005) Solvency Assessmenl Models Compared, Lssenlial
groundwork lor lhe Solvency ll Projecl, March 2005.
79
8ased on lhe delnilion ol Lquily and Peal-eslale risk in lAlS (2006) Clossary ol
lerms, March 2006.
80
8ased on lAlS (2006) Clossary ol lerms, March 2006.
8!
8ased on lAA (2004) A Clobal lramework lor lnsurer Solvency Assessmenl, A Peporl
by lhe lnsurer Solvency Assessmenl Working Parly ol lhe lnlernalional Acluarial
Associalion, 2004.
82
lAlS (2006) Clossary ol lerms, March 2006.
83
lAlS (2006) Clossary ol lerms, March 2006.
84
lAlS (2006) Clossary ol lerms, March 2006.
85
8ased on lAA (2004) Clobal lramework lor lnsurer Solvency Assessmenl, A Peporl
by lhe lnsurer Solvency Assessmenl Working Parly ol lhe lnlernalional Acluarial
Associalion, 2004.
62
Solvency ll Clossary
86
8ased on lSA (2004) Policy Slalemenl 04/!6, Annex A.5!, lnlegraled Prudenlial
sourcebook lor insurers, June 2004.
87
CLlOPS (2005) Cla !5, Solvency conlrol levels, Answers lo lhe Luropean Commission
on lhe second wave ol Calls lor Advice in lhe lramework ol lhe Solvency ll projecl,
Oclober 2005.
88
Harlmann, P. & De 8andl, O. (2000) LC8 Working Paper 35. Syslemic Pisk. A
Survey.
89
Nole lrom Harlmann, P. & De 8andl, O. (2000) LC8 Working Paper 35. Syslemic Pisk.
A Survey.
90
Luropean Commission, lnlernal Markel DC (2004) MAPKT2506-04 in lhe Calls lor
Advice (second wave), 23 December 2004.
9!
8ased on lAlS (2006) Clossary ol lerms, March 2006.
92
8ased on lAlS (2006) Clossary ol lerms, March 2006.
93
Nole based on lAlS (2006) Clossary ol lerms, March 2006.
94
Nole lrom S&P (2004) Clossary ol lnsurance Securilizalion Terms, Seplember 2004.
95
8ased on lAlS (2006) Clossary ol lerms, March 2006.
96
Nole lrom Alkinson, D.8. & Dallas, J.W. (2000) Lile lnsurance, Producls and linance,
Charling a Clear Course, Sociely ol Acluaries, 2000.
63
CLA Croupe Consullalil
4. Appendix I Risk map
The concepl ol risk in relalion lo Solvency ll can be delned as a change in value, eilher
posilive or negalive, due lo a devialion lrom lhe expecled value.
The risk map idenliles lhe main lypes ol risk lor insurers. The risk map should nol be
inlerpreled as a lull overview ol all risks lor insurers lhal may have lo be quanliled under
Solvency ll. Mosl nolably, lhe lisl ol non-Lile Underwriling risks is nol comprehensive.
The overall risk calegorisalion is based on lhe classilcalion ol lhe lAAs lnsurer Solvency
Assessmenl Working Parly* wilh lhe lve major risk calegories ol underwriling risk,
markel risk, credil risk, and operalional risk, and liquidily risk.
All risks ol an insurance underlaking can be considered lrom dillerenl perspeclives.
A good example is provided by lhe lwo common views on underwriling risk. The lrsl
view originales lrom lhe nalure ol lhe adminislralion ol risk wilhin lhe company,
dislinghuising belween risks ol claims which have already happened in lhe pasl lhe
reserve risk, and lhe risk ol claims which will happen in lhe lulure lhe premium risk.
The olher view considers lhe source ol lhe risk e.g. lre, windslorm, morbidily, lapses.
This risk map only displays lhe unique sources ol risk.
Some risks are dillcull lo include wilhin such a risk map. The concenlralion risk or
calamily risk lor example are in lacl risks already included via lheir risk causes bul have
a special name because ol lheir dillerenl diversilcalion behaviour wilhin a porllolio ol
risks. These risks reler lo lhe lolal dependency ol individual risks, because lhey may be
lriggered by lhe same evenl.
linally, lhe risk map only covers lhe main risk lypes lor insurers. Mosl risks can be lurlher
broken down inlo more delailed lypes. These sub-lypes are nol displayed.
* lAA (2004) A Clobal lramework lorlnsurer Solvency Assessmenl, A Peporl by lhe lnsurer
Solvency Assessmenl Working Parly ol lhe lnlernalional Acluarial Associalion, 2004.
64
Solvency ll Clossary
!.
Delaull risk can arise on many parlies, e.g. reinsurers, inlermediaries, elc. bul lhese are nol
included as separale risk lypes.
2.
Lapse risk includes surrender risk.
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65
CLA Croupe Consullalil
Notes
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Solvency ll Clossary
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The CEA - Groupe Consultatif publication Solvency II Glossary is available free-of-charge at
CEAs website: www.cea.assur.org and Groupe Consultatifs website www.gcactuaries.org.
CEA - Groupe Consultatif
Brussels, March 2007
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with the use of this information.
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Fax : +32 2 547 58 19
Groupe Consultatif Actuariel Europeen
Napier House
4 Worcester Street
Oxford
OX1 2AW
UK
Tel.: +44 1865 268218