An aggregation question

Most sophisticated financial services companies are using economic capital models to calculate and allocate capital across the group. However, obtaining a homogeneous economic capital number for firms with both banking and insurance businesses poses significant challenges

Banks and insurance companies are increasingly entering each others' domains to broaden their product range and create economies of scale. In countries such as the UK and Germany, supervisory responsibilities have been assumed by integrated financial services regulators, covering both banking and insurance. By the same token, supervisory concepts are being copied from one industry and adapted to the needs of the other - clearly illustrated in the similarities between Basel II and Solvency II.

Fin