Insurance Market Update - February 2010
The Deloitte view for life insurers
These regular communications are designed to keep you up to date with all the latest issues and challenges that you face in the world of insurance.
In this article, we look at the concept of risk appetite and a risk appetite framework, in the context of a life insurance company. A risk appetite framework defines the approach for setting a firm's overarching risk appetite, as well as the processes, controls and methodology for setting and managing risk limits. With Solvency II on the horizon, many insurance firms will need to enhance their existing risk appetite frameworks to meet the requirements of the Directive.
As such, in this edition of the Insurance Market Update, we consider the impact Solvency II requirements will have on an insurer’s risk appetite framework and we outline the key points a firm should consider to ensure their framework is meaningful and effective.
Page Last Updated