Insurance and banking have very different business models. As part of their business, insurers are exposed to different risks and therefore must be treated differently in terms of regulation and reporting. This report examines capital and its role in the insurance business model.

This report demonstrates that there is much common ground with regard to the main objectives and key elements of existing and developing solvency regimes. The International Association of Insurance Supervisors (IAIS) is currently developing its global Insurance Capital Standard (ICS), as part of...