Browsing: Quantitative data analysis

INTERNATIONAL JOURNAL OF INNOVATION AND ECONOMIC DEVELOPMENT

Quantitative data relevant to the analysis was extracted from the individual Solvency and Financial Condition Reports reports and transferred to a systematic overview. To make the collected observations usable, they were transformed into various growth, profitability, and security ratios cited in the literature, thus enhancing comparability. The data transformed into ratios were presented in histograms with ten intervals each, and a score between one and ten was assigned depending on the ratio value. In addition, four qualitative risk categories were initially identified, based on which the model would be operationalized. These were underwriting risk, market risk, credit risk and operational risk. Artificial intelligence was used to design seven questions on the requirements of Article 295 of Delegated Regulation 2015/35. Specifically, there were questions on the methodology of risk assessment, the description of specific measures, the comprehensibility of the measures, information on risk concentrations and the impact on the risk profile of the company as a whole, and risk mitigation measures and their effectiveness. Points were awarded from one to four, depending on the quality of the text used to answer the questions, based on the Appelfeller and Feldmann maturity model.