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By the end of next year, insurers and reinsurers doing business in the European Union will have to demonstrate to regulators there that they have sufficient capital to cover their obligations to policyholders. 

The requirements described in the Solvency II Standards for Data Quality define a process that should be a wake-up call for all insurance companies everywhere, including in the U.S., to implement best practices to analyze and evaluate exposures that can threaten solvency. This means embracing the use of multiple catastrophe risk models.

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