
Ultimate access to all questions.
The CFO and CRO of a French property-casualty insurance company are concerned about the potential impact of the recent European floods on their firm. They worry that a significant rise in property insurance claims due to the floods could result in their company's regulatory capital falling below the Solvency Capital Requirement (SCR) as specified by Solvency II regulations. What would be the consequence of this situation?
A
The company will be prevented from writing new property-casualty policies.
B
A plan to bring capital above the minimum capital requirement must be formulated.
C
The company can lower the capital charges assessed for determining the capital requirement by decreasing investment risk.
D
A waiver of capital requirements can be granted by the French insurance regulator.