Capital Management Frameworks: One Size Doesn’t Fit All
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Insurers should follow the lead of banks by implementing internal risk-adjusted capital adequacy frameworks that account for economic as well as regulatory factors under one integrated capital management system. That recommendation for P/C insurers from Deloitte sounds like a tall order--more so, perhaps, for smaller mutual or regional insurers with limited budgets than large global public companies. Here, Deloitte Principal Eric Clapprood explains that different insurers can follow different paths to get there.