Loading ...Most insurance companies will not be significantly affected by the new solvency regime (the European Solvency II directives to be implemented in 2012), president of the Romanian Insurance Monitoring Commission (CSA) Angela Toncescu said during in an insurance seminar on November 26.
Moreover, the technical reserves will be reduced, mainly in respect to the life insurance policies, thus contributing to the increase of the relevant companies’ own capital, revealed the quantitative impact studies (QIS4) conducted by CSA based on the 2007 data submitted by the companies.
On the other hand, the solvency capital requirements will rise, especially in regard to the general insurance policies, with a higher underwriting risk.
General insurance companies are most affected by the introduction of the new solvency requirements, Ionel Marin, director of the CSA Actuarial Department said.
On the other hand, the solvency capital requirements will rise, especially in regard to the general insurance policies, with a higher underwriting risk.
General insurance companies are most affected by the introduction of the new solvency requirements, Ionel Marin, director of the CSA Actuarial Department said.
The QIS4 study showed that two out of the three analysed general insurance companies have reported a 50% decrease of the capital surplus (the difference between own capital and the solvency capital requirements) following the implementation of the new rules, CSA representative reported.
However, according to CSA, there is a small number of companies that would have to raise their capital in order to cover the minimum capital requirements and the solvency capital requirements.
However, according to CSA, there is a small number of companies that would have to raise their capital in order to cover the minimum capital requirements and the solvency capital requirements.
Solvency II might have a greater impact on medium insurance companies, CSA informed.
According to the QIS4 specifications, a company must report gross underwritten premiums worth between 100 million and 1 billion euros and gross technical reserves between 1 and 10 billion euros in order to be regarded as medium company.
There were 42 insurance companies on the Romanian market in 2007, of which 35 were small and 7 medium companies.
According to the Solvency II project approved by the European Commission in 2007, this solvency regime will be enforced on companies reporting gross underwritten premiums exceeding 5 million euros.
There were some 25 insurance companies in Romania in 2007 complying with that requirement.
According to the Solvency II project approved by the European Commission in 2007, this solvency regime will be enforced on companies reporting gross underwritten premiums exceeding 5 million euros.
There were some 25 insurance companies in Romania in 2007 complying with that requirement.
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