Pls write the review for the article that i’ll attach after follow the fomat as example. Essay

Article Review

Author and publication details:

Elderfield, M., 2009. “Solvency II: Setting the pace for regulatory change,” in The Geneva Papers, vol. 34, pp. 35-41

Research context:

Elderfield intends to conceptualize on how the insurance sector can upgrade and meet international standards on insurance regulation. This is required considering that the insurance sectors has bin hit by the globalisation trend. The emphasis is that unpredictable market conditions and recess periods as recently witnessed worldwide, significantly impact the financial sector bringing further complexity to the insurance industry. The key point is that regulatory methods can be used to provide short to medium term resolution to the industry. The methods discussed are Solvency II and the Sub prime.

Unit of analysis: The analysis is basically on a macro-environmental level on the basis that it tackles how to regulate the industrial apply Solvency II financial service regulatory program in a global perspective. Furthermore, the program is initiated and controlled by the European Union (EU) through integrated decision-making. Nevertheless, the analysis also submerges to organizational and group level by describing project supervision and implementation with banks and other financial institutions as major actors. It also submerges to individual level that requires individual assessment to risk and solvency.

Data: The data is qualitative in nature and revolves around reports and actions on risk management, as submitted to the Bermuda Solvency Capital Requirement.

Type of study: The article is based on reviews from primary data and cases in existing documents and academic references. Firms also report on specific macroeconomic stressors and their top three adverse yet realistic adverse scenarios.

  • The provided samples are for problem translation and effect of proposed solution. These includes the linkage between a large issue as it impacts a smaller one, as demonstrated by world market recess period to insurance firms’ adaptation to risks.

  • Integrating reliable reports that have recorded and compared the problem’s trend. For instance, the Report of the Financial Stability Forum (2008) and the Bermuda Solvency Capital Requirement are evaluated to study the trends and behaviour of the firms in the financial and insurance sectors.

Theoretical concepts explored:

The author’s rationale is based on three regulatory trends believed to impact the insurance industry in the future. Enhanced supervisory, increased scrutiny of risk management practices, and increased risk metrics disclosure are models grounded in theory, proposed to eliminate poor and unreliable insurance practices.

Main critique of extant literature:

Elderfield (2009) critiques previous researches that focus on Solvency II as the only source of regulatory change and emphasizes that for Solvency II to be effective, it must be integrated with Sub Prime. Moreover, a thorough analysis and knowledge of user should be available in order to design the best regulatory model. Another critique is levelled to studies that depend on data of rating agencies. Most rating agencies have a lot of influence in the structured credit market and are likely to give biased ratings of services.

Major insights/conclusions about topic:

The main argument of the article is that financial stability can be gained trough standardized and reliable insurance practices. Supervision, transparency, and disclosure are major attributes for effective risk management. The insight developed is that a combination of solvency standards harmonized at international levels, economic capital modelling recognition, and enhanced disclosure will provide better rating agencies for insurance firms.

Suggestion for further theorising or research topic:

Elderfield (2009) emphasizes that further action is still required at improving the Bermuda Solvency Capital Requirement initiative, and also exploring the economic capital modelling. Furthermore, future research should focus on applying solvency at group level.