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In Case of Emergency: Capital Requirements

In: A Risky Business

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  • Catrin Townsend

Abstract

Businesses don’t like holding money. Money sitting in a bank account is money that could be better used for other things—investing in the business, or perhaps investing in other people’s businesses—to receive a higher return. In this chapter, we will be considering how much money insurers and pension providers need to hold. Like most actuarial science, it involves balancing risk and practicalities. And like most Simpsons episodes, it involves a touch of reality, a dash of the absurd, and a talent for predicting the future.

Suggested Citation

  • Catrin Townsend, 2022. "In Case of Emergency: Capital Requirements," Springer Books, in: A Risky Business, chapter 0, pages 241-266, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-11673-5_12
    DOI: 10.1007/978-3-031-11673-5_12
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