Economics at your fingertips  

Comparative analysis of evaluation models in insurance solvency

Costin Andrei Istrate
Additional contact information
Costin Andrei Istrate: Bucharest University of Economic Studies, Romania

Theoretical and Applied Economics, 2017, vol. XXIV, issue Special, 27-36

Abstract: Adoption and implementation of a new model for calculating the solvency of insurance at European level since 2016 by legislating Directive 2009/138/EC, known as Solvency II Directive, was the end of a long process of testing and analysis of insurance market European bodies conducted by the European Commission level. But before the actual implementation from 1 January 2016 the new solvency regime Solvency II on the European level, the European Commission has issued during 2015 a number of decisions on equivalence of the prudential regime and solvency for insurance and reinsurance headquartered central in third countries, which apply to group solvency calculation models different, depending on the rules of non-EU jurisdiction concerned. Thus, agreements were signed patterns equivalent solvency regime Solvency II with number eight countries: Bermuda, Switzerland, Australia, Brazil, Canada, Mexico, the US and Japan, for a period of ten years. After analyzing those models resulted primarily important risks in the standard formula calculation of solvency. As a result, there were three countries that are aligned in terms of calculating the solvency margin model Solvency II, while in the remaining countries the differences are due to insufficient coverage of the variables taken into account related mainly technical risk and market. In conclusion, the adoption of Solvency II regime in Europe is a challenge in terms of quality compared to the rest of the countries that apply different models of solvency.

Keywords: solvency models; Solvency II; insurance. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) ... nce_FIBA_2017_XV.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Marin Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Series data maintained by Marin Dinu ().

Page updated 2017-09-29
Handle: RePEc:agr:journl:v:xxiv:y:2017:i:special:p:27-36