A generic framework for the economic valuation of Insurance Liabilities allows companies to calibrate their risk margin to reflect a truly market-consistent value.
On 8 July 2015, the Swiss Financial Market Supervisory Authority FINMA put a revised package of circulars out for consultation. Many proposed changes have a direct and indirect impact on the Swiss Solvency Test (SST) and its use by Swiss insurers. The most significant impacts arise from the newly released circulars on public disclosure and ORSA.
On 23 February, FINMA responded to the current economic environment and required all SST (Swiss Solvency Test) reporting companies to add a chapter to their SST Report on the effect of the SNB decision to remove the euro cap and the lowering of the base rate.