The European Union Solvency II Directive specifies the amount of capital EU insurance companies must hold to reduce the risk of insolvency. It requires insurers to use quantitative methods for policy and actuarial simulation, risk projection, and economic capital forecasting, and to report results across the organization.
Sometimes, Solvency II is called Basel for Insurers. It consists of three pillars similar to Basel, including quantitative requirements (similar to the minimum capital requirement of Basel III framework), supervisory review, and disclosure requirements.
Common tasks associated with a Solvency II platform include:
For detail, see MATLAB®, which is commonly used as part of, or in some cases, to drive a Solvency II platform.