THE SOLVENCY REQUIREMENTS IN THE PROJECT SOLVENCY II: EVALUATING THE IMPACT OF INSURANCE COMPANIES' FINANCIAL RESULTS

The mean of security of insurance companies' financial soundness and stability - a solvency margin, determining not only the lower default risk of the insurance company, but at the same time and the additional costs of insurance business, which, depending on the market situation, are implicitly shared between the insurance company and its customers. In the Solvency II project more stringent solvency margin requirements are formed, based on the need to better manage the risks of insurance companies, these requirements raise a series of discussions on the additional costs, which will be assumed by the insurance company and, therefore, suffer worse performance results. To assess the impact on the solvency of insurance companies' financial performance results, it is appropriate to examine the relationship between these two variables on actual market conditions.