Solvency II and IFRS 4 have introduced significant changes both to the balance sheet and to how risks are managed. The activities of underwriting and investing the funds saved by policyholders present both opportunities and risks for insurers.While Solvency II is implemented across the EU, IFRS 4 is applicable worldwide. Solvency II separates the balance sheet from risk evaluation, addressing risks through required capital. In contrast, IFRS 4 relies solely on reserves to cover risks and therefore seeks innovative reserving approaches and methodologies.Actuaries and risk experts have been...