"Machine learning methods are getting more and more important in the development of internal models using scenario generation. As internal models under Solvency 2 have to be validated, an important question is in which aspects the validation of these data-driven models differs from a classical theory-based model."
The paper delves into the intertwining of financial institutions and environmental concerns, particularly climate change and biodiversity loss. It introduces a dual framework based on 'impact' and 'ri
The paper explores optimal insurance contracts using decision makers' preferences, combining expected loss with a deviation measure like Gini coefficient or standard deviation. It reveals that using e
“I show that, during a normal economic period, rather than having a disciplining effect, disclosure leads to banks increasing risk taking, consistent with banks facing pressure to offset the costs of