Professor Dr. Alois Gisler: On the Development of the Swiss Solvency Test
Prof. Dr. Alois Gisler (ETH Zurich, RiskLab Switzerland) holds a seminar with the title "On the Development of the Swiss Solvency Test"
The new solvency regime (Swiss Solvency Test (SST), Solvency II ) has been the dominant actuarial topic over the last decade, in academics as well as in practice.
In my talk I will start with a historical review: regulated world, deregulation, the emergence of capital based thinking, what happened, that after so many years of solvency I there was suddenly a need for a new solvency regulation. Then I will speak about basic principles such as the “Kiss Principle”, which was followed when developing the non-life standard model of the SST and which I will illustrate on an example. I will also comment on some differences between SST and Solvency II. A special focus will be put on discussing the risk measure and its implication in practice illustrated at the different perception between insurers and banks. At the end I will highlight a problem, which has been overlooked for a long time and which a major part of the actuarial community is still not aware of: the currency problem.
My talk will not focus on sophisticated actuarial technics, but rather on a general understanding. It addresses to both: practitioners and academics, junior and senior actuaries working in practice as well as students, researchers and professors in the insurance and finance area.