Swiss Solvency Test
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The Swiss Solvency Test (SST) is a risk-based capital standard for insurance companies in Switzerland, in use since 2006.[1] The SST was developed by the Swiss Federal Office of Private Insurance (FOPI) in cooperation with the Swiss insurance industry.[1]
The SST measures risks using the following basic principles:[2]
- Financial instruments with market prices must be recognized on the balance sheet at market price
- Capital requirements must be risk-based
- The balance sheet must be assessed as a whole without any off-balance sheet positions
