On the other hand, Insurance Core Princile ICP 18 defines “how supervisory authorities should require insurers to recognize the range of risks that they face and to assess and manage them effectively”; and ICP 19 “states how supervisory authorities should require insurers to evaluate and manage the risks that they underwrite, in particular through reinsurance, and to have the tools to establish an adequate level of premiums”.
1 There are clearly different schools of economic thought, with their own analytical frameworks, which in turn has a bearing on both the analyses of economic imbalances and the policy prescripts to remedy them.