Details
| Translated title of the contribution | Make or Buy or Something Else? - A proposal to improve the internal rating expertise in the German insurance industry: A proposal to improve the internal rating expertise in the German insurance industry |
|---|---|
| Original language | Multiple languages |
| Pages (from-to) | 271-283 |
| Number of pages | 13 |
| Journal | Zeitschrift fur die gesamte Versicherungswissenschaft |
| Volume | 104 |
| Issue number | 3 |
| Early online date | 23 Aug 2015 |
| Publication status | Published - Aug 2015 |
| Externally published | Yes |
Abstract
Due to a paradigm shift in the insurance supervision the insurers will have to consider internal ratings additionally to external ratings. This already applies specifically to credit risks. Rating know how in this regard is not sufficiently developed in the insurance industry yet. Therefore especially the valuation of so called alternative investments, like infrastructure or renewable energy projects, is a big challenge. This paper makes a contribution by suggesting a cooperative way of implementing a process that generates internal ratings. For this purpose the rating process is disassembled and split up between an external service provider with access to an existing rating tool and the respective insurer. The shared process is designed to meet the requirements for the insurers risk management under Solvency II. Of course the partial outsourcing entails advantages and disadvantages which have to be weighed against each other. Nevertheless the proposed arrangement is likely to be interesting for smaller insurers.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Accounting
- Economics, Econometrics and Finance(all)
- Finance
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
Sustainable Development Goals
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In: Zeitschrift fur die gesamte Versicherungswissenschaft, Vol. 104, No. 3, 08.2015, p. 271-283.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Make or Buy or Something Else?
T2 - Ein Vorschlag zur Stärkung der Internen-Rating-Kompetenz der Versicherungswirtschaft
AU - Linderkamp, Tim
AU - Schwarzbach, Christoph
AU - Korn, Matthias
AU - Schwalba, Michael
AU - Graf von der Schulenburg, Johann Matthias
PY - 2015/8
Y1 - 2015/8
N2 - Due to a paradigm shift in the insurance supervision the insurers will have to consider internal ratings additionally to external ratings. This already applies specifically to credit risks. Rating know how in this regard is not sufficiently developed in the insurance industry yet. Therefore especially the valuation of so called alternative investments, like infrastructure or renewable energy projects, is a big challenge. This paper makes a contribution by suggesting a cooperative way of implementing a process that generates internal ratings. For this purpose the rating process is disassembled and split up between an external service provider with access to an existing rating tool and the respective insurer. The shared process is designed to meet the requirements for the insurers risk management under Solvency II. Of course the partial outsourcing entails advantages and disadvantages which have to be weighed against each other. Nevertheless the proposed arrangement is likely to be interesting for smaller insurers.
AB - Due to a paradigm shift in the insurance supervision the insurers will have to consider internal ratings additionally to external ratings. This already applies specifically to credit risks. Rating know how in this regard is not sufficiently developed in the insurance industry yet. Therefore especially the valuation of so called alternative investments, like infrastructure or renewable energy projects, is a big challenge. This paper makes a contribution by suggesting a cooperative way of implementing a process that generates internal ratings. For this purpose the rating process is disassembled and split up between an external service provider with access to an existing rating tool and the respective insurer. The shared process is designed to meet the requirements for the insurers risk management under Solvency II. Of course the partial outsourcing entails advantages and disadvantages which have to be weighed against each other. Nevertheless the proposed arrangement is likely to be interesting for smaller insurers.
UR - http://www.scopus.com/inward/record.url?scp=84941949554&partnerID=8YFLogxK
U2 - 10.1007/s12297-015-0318-6
DO - 10.1007/s12297-015-0318-6
M3 - Article
AN - SCOPUS:84941949554
VL - 104
SP - 271
EP - 283
JO - Zeitschrift fur die gesamte Versicherungswissenschaft
JF - Zeitschrift fur die gesamte Versicherungswissenschaft
SN - 0044-2585
IS - 3
ER -