IFA - Solvency 2 Flashcards
1
Q
What does the acronym ENID stand for in the context of Solvency 2?
A
Event Not In Data
2
Q
What is the usual definition of ENID?
A
High severity, low probability events.
3
Q
What is the proposed definition of ENID?
A
The BALANCING AMOUNT required to bring the best estimate before ENID up to an amount for all possible future outcomes.
4
Q
Describe how ENID can be identified. (3)
A
- bring together parties who understand the insurer’s exposure
- their discussion should include factors affecting:
i) future settlement of past events
ii) potential future claims relating to current exposures - SPECIFIC events to consider may include: catastrophes, court awards, legislative changes
