SOLVENCY SUPERVISION IN FRANCE

1
SOLVENCY SUPERVISION IN FRANCE

• Florence LUSTMANSecrétaire généralede la
  Commission de contrôle des assurances

2
SOLVENCY

• a ratio
• Is not
• accounting
• Is the ability for A given company to
  fulfill all its commitments in time
• global
• Is prospective
• entity specific

3
Practical implementation ofsolvency supervision
in France 3 basic pillars

• Prudent and prospective valuation of liabilities
• Life
• Non life
• Adequate assets matching liabilities
• prudently valued
• diversified
• sufficiently liquid
• Minimum capital the solvency margin(the final
  safeguard)

4
A system which has beenreasonably satisfactory

• Necessary
• Not sufficient
• ALM, duration
• Sophistication of risk assessment for some risks
• Reinsurance
• Quality of management

5
Supplemented by toolsspecificly adapted to
each enterprise depending on its risk profile

• Quaterly asset liability reports (including
  stress testing)
• Annual solvency report

6
Conclusion

• A general scheme supplemented by tools that have
  to fit any entity s specificities