Report 4: A Review of Historical Insurance Company Impairments (1996-2010)

The purpose of this paper is to study historical insolvencies with emphasis on patterns that can be related to risk factors relevant to the NAIC P&C RBC formula. This is one of several papers being issued by the Risk Based Capital (RBC) Dependencies and Calibration Working Party (DCWP). Conclusions are qualitative – company size, concentration by state and line of business, and reinsurance usage seem to be relevant to the understanding of historical impairment patterns.

Keywords: Insolvency, Solvency, Impairment, Risk-Based Capital, Capital Requirements, Insurance Company Financial Condition.