This paper provides an important summary of the pension industry's perspective on Enterprise Risk Management for capital and solvency purposes in the insurance industry, noting that:
- in pensions the sponsoring company is generally not an insurance company and therefore pension issues should, in the sponsoring employer, be dealt with in the general framework of ERM, not just in a framework adapted to insurers; and
- while pensions have much in common with insurance contracts, there are quite a few differences, meaning that the framework adapted to insurers is not directly applicable to pension funds.