The author provides a few practical comments on capital adequacy from an insurance company perspective. In doing so, he presents two views on capital adequacy and capital allocation in the insurance industry. The first view is the regulatory perspective, that is, the motivations behind...

This paper was presented at the conference "Financial services at the crossroads: capital regulation in the twenty-first century" as part of session 5, "International capital allocation at financial institutions." The conference, held at the Federal Reserve Bank of New York on February 26-27,...