Essays on Policy Options in Monitoring Solvency Coursework

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The paper "Policy Options in Monitoring Solvency" is a great example of micro and macroeconomic coursework. Advancement in technology has improved even in developing countries hence there is a need to change, adopt technology, and make optimum use of the same. Simplification for payment of goods and services has taken place through the introduction of technological changes and innovations. The statistics from the world payment report 2013 indicate that there is a worldwide rise in the volume of non-cash payments by a total of 7% in 2009 to over 260 billion in the year 2013.

A study by Abor (2010) pointed out that before the introduction of electronic payments in most countries, customers had their banks to perform all transaction and with long queues payments through the banks became a problem in as much as it has been realized that the liquidity and capital solvency problems were monitored through central banks. Heek (2011) in his study described information development in countries like Kenya and Ghana as questionable and coupled with different challenges when it comes to electronic payments. The environment of payments normally consists of institutional infrastructure and processes that exist in a particular society for initiating and transferring monetary claims in the form of commercial and central bank liability (EU Commission, 2006).

The setting includes payments instrument, the network arrangement, institutional players, and market convention, legal and regulatory framework. In rapidly developing countries like Ghana, the central bank plays a regulatory role in the payment business. At the same time, there are firms that develop, rollout and provide the needed infrastructure for electronic payment systems (SST, 2014). The organizations that adopt the payment systems are the consuming firms in the transaction business while serving as intermediaries between the service providers and the public as a whole who uses the payment system like mobile phones. The recent introduction of mobile money payment in fast-growing economies like Kenya, Ghana, and India has eased the trouble of sending money domestically (SST, 2014).


1.0. Bibliography

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Benjamin, B. 1977. General Insurance. Heinemann, London (published for the Institute of Actuaries and the Faculty of Actuaries).

EU Commission 2006. Amended Framework for Consultation on Solvency II, MARKT/2515/06, April 2006. European Commission, Internal Market and Services DG, Financial Institutions, Insurance and Pensions.

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Giamouridis, D 2006. Estimation risk in financial risk management: a correction, Journal of Risk, Vol. 8, pp. 121–125

Groupe Consultatif (2005): Diversification, Technical paper, Version 3.1, 17 October 2005

Heek N, 2011. Market value of liability mortality risk: a practical model, North American Actuarial Journal, 6, pp. 95–106.

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Pentik¨ainen, Teivo, Heikki Bonsdorff, Martti Pesonen, Jukka Rantala and Matti Ruohonen 1952 . Insurance Solvency and Financial Strength. Finnish Insurance Training and Publishing Company Ltd, Helsinki. ISBN 951-9174-75-3.

SST, K 2014. The Risk Margin for the Swiss Solvency Test. Swiss Federal Office for Private Insurance, September 17.

Willemse, W. & Wolthuis. H, (2005): Risk based solvency norms and their validity. Report (1 September 2005), Presented at the 28th International Congress of Actuaries in Paris 2006.

Wright, Peter (2006): A view of the IASB’s work on accounting for insurance contracts.

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