Reserving for APH Liabilities under Solvency II

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By Christopher Clarke, Gary Wells, Derek Newton | 28 February 2011
Solvency II will see a fundamental change in how insurers are required to report their technical provisions, and ensuring that reserves are on a best-estimate basis will be a primary concern for all. This paper discusses the particular challenges that insurers with asbestos, pollution, and health hazard (APH) liabilities are likely to face in setting provisions in accordance with the new rules.