IFA - Solvency 2

Question 1

What does the acronym ENID stand for in the context of Solvency 2?

Answer 1

Event Not In Data

Question 2

What is the usual definition of ENID?

Answer 2

High severity, low probability events.

Question 3

What is the proposed definition of ENID?

Answer 3

The BALANCING AMOUNT required to bring the best estimate before ENID up to an amount for all possible future outcomes.

Question 4

Describe how ENID can be identified. (3)

Answer 4

• bring together parties who understand the insurer’s exposure
• their discussion should include factors affecting:
  i) future settlement of past events
  ii) potential future claims relating to current exposures
• SPECIFIC events to consider may include: catastrophes, court awards, legislative changes