An Empirical Research Regarding Density and Penetration Insurance on Accident & Health Premiums in Future Implementation of Solvency II

Abstract

Abstract The purpose of this paper is to present an empirical study regarding density and penetration on accident & health premiums. At the beginning of this paper we have presented the motivations of this research, highlighting and explaining the specific factors which influence the density and insurance penetration. Implementation of Solvency Directive at European level, in the field of insurance and its transition from Solvency I to Solvency II is through specific consequences, an important motivation for the development of this sector of the national economy. The changes made to accounting legislation at national, European and international level, with immediate consequences on specific information presented in the financial statements of insurance companies, was another predominant reason of our research. The appearance of International Financial Reporting Standards in general, particularly the IFRS 4 named “Insurance contracts”, followed by its evolution phases (from Phase I to Phase II) allowed the creation of XBRL's in as the international standard of publication, exchange and financial analysis of data reported. Also, we cannot forget that the legislative changes in accounting have interesting consequences on economic risk management specific to this field, in terms of huge efforts from national and European supervisory authorities to control and prevent the bankruptcy of its firms.