Geneva Association Paper on Capital Allocation - More Capital = More Stability?

Very nice and very concise paper from our chums at the Geneva Association, using Solvency II/Swiss Solvency Test backdrop to challenge the appropriateness/perversity of increasing capital requirements in order to instill/achieve improved confidence, and the exponential costs of looking for incremental improvements in confidence, covering some normal and fat tail distribution angles, and the ultimate overall cost to society in seeking 100% confidence - well worth a read.