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The chain-ladder (CL) method is the most widely used claims reserving technique in non-life insurance. This manuscript introduces a novel approach to computing the CL reserves based on a fundamental restructuring of the data utilization for the CL prediction procedure. Instead of rolling forward the cumulative claims with estimated CL factors, we estimate multi-period factors that project the latest observations directly to the ultimate claims. This alternative perspective on CL reserving creates a natural pathway for the application of machine learning techniques to individual claims reserving. As a proof of concept, we present a small-scale real data application employing neural networks for individual claims reserving.
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These EIOPA guidelines establish a framework for identifying critical insurance functions and removing resolvability impediments to protect policyholders and maintain financial stability. The sources evaluate whether to assume a "complete stop" or a more flexible "partial stop" of services when assessing a firm's failure, ultimately preferring the latter to better reflect economic reality. Authorities are empowered to address structural issues, such as complex group organizations or insufficient loss-absorption mechanisms, that might hinder orderly resolution. Furthermore, regulators may restrict new business lines or products, particularly those under third-country laws, if they complicate the enforcement of resolution powers. National authorities must integrate these standards into their regulatory frameworks to ensure a harmonized level playing field across the European Union. Implementation of these rules aims to safeguard public funds by reducing the necessity for extraordinary financial support during an insurance crisis.
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This document presents an official opinion from EIOPA regarding the European Commission’s efforts to simplify and streamline the European Sustainability Reporting Standards (ESRS). While the authority generally supports reducing the regulatory burden for companies, it expresses specific concerns that excessive reporting reliefs could decrease the quality and comparability of essential data. EIOPA emphasizes that maintaining high-quality disclosures is vital for insurance and pension sectors to accurately assess sustainability risks and fulfill their roles as institutional investors. The text highlights the importance of interoperability with international standards, such as IFRS, and ensures that new reporting rules remain consistent with existing EU legislation like Solvency II and the SFDR. Ultimately, the source advocates for a balanced approach where simplification does not compromise the transparency or stability of the financial system.