Possible Solutions to the Question of Insolvency – Empirical Analysis Regarding the Degree of Exposure of the Solvency of Romanian Insurance Companies

Abstract

Abstract This paper tackles a broad topic by endeavouring to find solutions to avoid insolvency in regard to insurance companies in Romania. The maintenance of the solvency state of insurance companies requires them to have the ability to honour their obligations to policyholders and beneficiaries of the contract. We analysed solvency as a dependent variable - as compared to the degree of the exposure of solvency, since solvency is, in our opinion, a key element in the management of assets and liabilities, and is a topic that is currently preoccupying researchers. The importance of the research is underlined by the fact that this subject is highly relevant in regard to insurance companies who have been subject to increased market demands in a business environment that have become difficult to navigate. Through the study conducted, built on relevant opinions from academic literature, we chose as the objective of the research, the identification of the influence variables and the intensity with which they impact the degree of exposure of the Romanian insurance company's solvency. Our analysis led to the identifications of new elements that can optimize the effects of the insolvency law as applied to insurance companies in Romania.