Prof. Dr. Michel Dacorogna review changes in the insurance industry due to new risk-based regulations such as Solvency 2 and SST. The move from corporate management based on cash-flow to risk-based management is described and discussed through its consequences on capital management, economic valuation and the internal model. In this paper, He discusses the limits and difficulties of Enterprise Risk Management and its effect on the organization of companies and the role of actuaries in insurance. The risk/return relationship is becoming a central element of the company’s management, slowly supplanting the traditional accounting view.
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