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Observations on Solvency in the Context of Life Insurance Regulation

Joseph M. Belth
The Journal of Risk and Insurance
Vol. 34, No. 4 (Dec., 1967), pp. 539-560
DOI: 10.2307/251420
Stable URL: http://www.jstor.org/stable/251420
Page Count: 22
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Observations on Solvency in the Context of Life Insurance Regulation
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Abstract

The purposes of this paper are to discuss the current regulatory approach to life insurance company solvency, to consider certain fundamental questions that seem to arise from the current approach, and to suggest certain areas in which some fresh thinking by insurance leaders might prove beneficial to both the buying public and the life insurance business. The conclusion is that the techniques currently being used in the determination of the solvency position of life insurance companies should be reexamined thoroughly, because the present system, which was developed in an environment markedly different from that of today, may not be performing in the best possible manner for the public and for the life insurance business.

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