ABSTRACT

The importance of the financial strength, or the financial health, of

an insurer is self-evident, but it is not a t r iv ia l p rob lem to find

appropriate ways of measuring the pos i t ion and defining what is

satisfactory. In this section methods of measuring financial status

are considered first and then tools for mon i to r ing and safeguarding

financial strength, as well as some related aspects. These are steps

i n preparat ion for section 14.5, where they w i l l be used as bu i ld ing

blocks i n the management decis ion-making process for the company.