An outlook on own funds

In this paper the authors outline the position of the German insurance industry on the proposed Solvency II framework directive's system for categorising own funds by thomas schubert and mirko kraft

Solvency II is a key project of the European Commission. It will replace the current European insurance directives (Solvency I) with its rules on required capital (solvency margin) and on available capital (available solvency margin). In aiming to establish an economic risk-based solvency framework for the European insurance market, not only the calculation of capital requirements will change fundamentally, but also the determination of eligible elements to cover these capital requirements ('own