Kenny rule article

( Patjcrowe@aol.com )
Wed, 8 Jul 1998 22:39:22 EDT

Our insurance department is suggesting our company has too much excess surplus
according to the infamous Kenny rule ie 2 to 1. Several years ago, I read an
article that discussed the Kenny rule. I faintly remember the article listing
the reasons why the Kenny rule is not an appropriate analytical tool.

Does anyone recall this article or know of any other articles that discuss the
inadequacies of the Kenny rule and provide better measures. The RBC formulas
relate to minimum solvency measures. I am looking for methods that quantify
surplus needs for a well financed insurance operation under adverse scenarios.

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