This paper analyses the performance of the international insurance industry during the financial crisis and examines the importance of insurance to systemic financial market stability, emphasizing the need for correct assessment of the characteristics of insurance companies, such as their...

In this work the traditional profit test - "the process of assessing the profitability of an insurance contract in advance of it being written", as defined in the "Encyclopedia of Actuarial Science" - is built according to the principles of "market consistency"outlined in the Solvency II EU...