Insurers’ solvency analysis in Solvency II system on the example of selected companies

Abstract

Solvency is one of the key factors in the functioning of any enterprise, including in particular insurance companies. Owing to the nature of the business, insurers’ solvency has long been regulated in detail not only by national laws, but also by European law. The insurance market has undergone a major change recently. So far Solvency I rules – already well known by insurers and generally not too complicated, have been now replaced by Solvency II, which is a huge challenge for the insurance market. The main aim of the article is to analyse the solvency of a selected group of ten Polish insurance companies, according to the solutions adopted in the new legal system governed by the Solvency II Directive. The paper also deals with the basic issues related to the concept of the solvency of the insurance companies, regulating these issues in the legislation, and general characteristics of the requirements of insurance companies in the Solvency II regime. This has been the first work that refers to the financial data of Polish insurers disclosed for the first time in May 2017 in completely new Solvency and Financial Condition Reports (SFCR).