Risk Capital and Economic Value for Insurers
Document ID: 2002-775 (previously 2002/003)
Published on: 30th September 2002
Author: Craig Turnbull
This note explores the basic principles underlying how an insurer creates economic value, the demand this creates for risk capital (by which we mean the capital required in excess of that supplied by policyholders to support the policies’ financial risks), and the implications this may have for risk management decisions and policy.
