SCOR: Valuation in insurance and financial crisis

Examines the economic problems posed by the valuation of insurance and reinsurance assets and liabilities. Then, analyses the relevance of today’s competing accounting standards, concluding that they offer a very imperfect resolution to the challenges of insurance valuation. Finally, analyses the consequences of these problems for financial stability –in terms of the solvency of companies, the financing of the economy, and the ability to absorb shocks to the system. Concludes that they are significantly greater than is often imagined.

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