The challenges of calculating meaningful economic capital figures

This paper looks at why economic capital (EC) calculations are frequently under-used as a tool to drive business strategy, and why that amounts to a huge missed opportunity for insurance businesses of all sizes.

It explores the barriers that prevent insurance businesses from using EC as a strategic tool to shape, strengthen and improve the business, and suggests a four-step process to ensuring that economic capital calculations become a vital planning resource for all areas of the business, including risk, finance, underwriting and asset management.