Analytics in the large Solvency II

Solvency II is a European Union Insurance specific regulation similar to BASEL III for Banks. It is also a quantum jump in the art and science of macro economic forecasting and imposes a level of precision with complexity that will be a challenge for all. While delayed in implantation the ongoing economic crisis and the debate over more austerity or more government funded stimulus highlights the conflicting needs of precision ( 99.5% certainty level) and robustness ( under dramatic different scenarios) .

I authored a Point of View for a client some time back. Read the original for the full implications. The paper is a deep dive. You are forewarned….

Solvency II : Analytics in the large