A solvency study in non-life insurance

Abstract

This is the first of two papers which report on a solvency study. The study is based on statistical analyses of policy and claims data of a portfolio of single-family houses and dwellings. This paper deals mainly with analyses of fire, windstorm, and glass liabilities. Claim frequencies and claim size distributions are estimated, and the results are used to derive moments of the annual claim amounts and to provide examples of solvency margin requirements for different classes of business. The second paper is devoted to a broader discussion of solvency margin requirements in non-life insurance.