Implementation of the Swiss Solvency Test – StandRe as standard model for reinsurers

Summary

StandRe is the standard model for the non-life insurance risk of reinsurers for the Swiss Solvency Test (SST). It has been used for the first time in 2018 for the calculation of the official SST results.

StandRe was developed by FINMA with involvement of the industry following the partial revision of the Insurance Supervision Ordinance in 2015. Previously, it had been mandatory for reinsurers to use an internal model (at least for insurance risk). The design of StandRe is shaped by the challenges posed to a standard model by the special characteristics of reinsurers, including potential global coverage, insurance of tail risks as a business model, very different risk situations, and limited data availability.

This talk will discuss the development of StandRe, the principles underlying its design, its main features, and the FINMA experience from its first use in the SST 2018. Please join our chapter event for an interactive discussion and the option to ask questions directly to the presenters.

Presenters

Dr. Christoph Möhr: Risk Management at Swiss Financial Market Supervisory Authority FINMA
The session will be opened by Ioannis Akkizidis, Chapter Co-Chair and moderated by Xandra Farkas, Senior Consultant at AON.

Chapter Event

In our chapter events – access for members only – we present one or more speakers to share knowledge, updates and best practises on a specific risk topic. In small groups of risk professionals you can exchange thoughts and test ideas. More on SRA chapters. This event is hosted by the chapter Regulatory Developments.