SOLVENCY II - RISK ASSESSMENT AND ACCOUNTING

Abstract

Solvency II is a new risk-based framework for setting the capital requirements of European insurance companies, in force since January 2016. The solvency capital requirement (SCR) is set such that the insurer can meet its obligations over the next 12 months with a probability of at least 99.5%. Project Solvency II is aimed to create a system of solvency taking into account the profile of risk which insurance companies and reinsurance companies are exposed to on account of their activity. It will turn out to be necessary to build risk assessment models taking into account risks which have not been taken into account when assessing capital requirements for insurance companies so far. This paper discusses the risk assessment and accounting in the practice of insurance companies.