Issues arising amongst some insurers in relation to matters such as capital management and the quality of risk management and governance sometimes revealed scope for improvements in the form of more specific definitions or guidance. 8  More specific provisions and definitions and clearer guidance on some matters would reduce scope for outcomes to be quite so dependent on firm’s interpretation of sufficient selfdiscipline.
In connection with the work on covered bonds, two committees have been set up to deal with the balance principle and "joint funding", respectively. Danmarks Nationalbank's position is that the Danish balance principle could be adapted and made more flexible to bring it more in line with modern riskmanagement principles.