Practical challenges and possible solutions for life insurers relating to the Delta-Gamma approach under the Swiss Solvency Test
In 2011, the 5-year phase-in period of the Swiss Solvency Test (SST) ended, and now all insurers are required to meet the SST capital requirements. This paper focuses on implementation challenges for life insurers relating to the so-called ‘Delta-Gamma’ approach under the SST standard model, as well as possible practical solutions to these challenges.
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