Swiss Solvency Test
The Swiss Solvency Test is a risk-based capital standard for insurance companies in Switzerland, in use since 2006. The SST was developed by the Swiss [Federal Office of Private Insurance] in cooperation with the Swiss insurance industry.
The SST measures risks using the following basic principles:
- 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