Abstract
Determining the solvency of insurance companies on the basis of comprehensive consideration of different risk groups is becoming especially relevant in modern financial activity, which requires thorough research of these aspects of the problem. This article contains the types and structuring of the main risks of insurance activity and it also presents their relationships.
Highlights
The importance of providing the solvency of insurers has become important as a result of the global financial crisis of 2007–2008
Practical calculations prove that the new approach proposed by the authors to determine the regulatory solvency, which is based on a set of risks, including insurance, market, credit and operational risks, requires increased requirements for the actual capital of the insurance company
The main advantage of this approach towards assessing the solvency of the company is an analytical assessment of various risks, which allows improving insurance risk management, control risk positioning in the financial market, effectively managing economic activity and ensuring overall financial stability
Summary
The importance of providing the solvency of insurers has become important as a result of the global financial crisis of 2007–2008. In countries of the EU, the Solvency II Regime (Directive 2009/138/EC) was introduced in 2009 – as amended by Directive 2014/51 / EU (Omnibus II), replacing the 14 existing directives, commonly known as Solvency I This was due to the fact that the simplified Solvency I model did not provide an accurate assessment of the risks faced by each insurance company. Solvency II, like the Basel Framework for Banks, aims to correct disadvantages of financial and insurance activities in order to minimize risks for both the financial institution and its shareholders and customers In this way, the asymmetry of information is overcome, endogenous and exogenous shocks and imbalances in the financial markets are reduced
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