European Financial and Accounting Journal 2017, 12(3):87-102 | DOI: 10.18267/j.efaj.189

Own Funds Under Solvency Regime

Pavel Wünsch
University of Economics in Prague, Faculty of Finance and Accounting, Department of Financial Accounting and Auditing, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic.

European legislation for the prudential regulation of insurance and reinsurance sector has existed since the 1970s, gradually materialized in Directive 92/49/EEC and Directive 2002/83/EC, both known as Solvency I. Due to economic and political development the regime become insufficient and therefore in 2009 was adopted the Directive 2009/138/EC known as Solvency II, which represents a crucial modernization of European insurance regulation. Each of these regimes prescribes its own rules for the valuation of assets, liabilities and available capital to cover regulatory solvency requirement. This paper is focused on detection of conditions set up for valuation of assets and liabilities under each of the regime and to outline the calculation of available capital under each of the model.

Keywords: Insurance, Regulation, Solvency I, Solvency II, Available solvency margin, Available own funds, Eligible own funds
JEL classification: G22, G28, K23

Published: December 11, 2018  Show citation

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Wünsch, P. (2017). Own Funds Under Solvency Regime. European Financial and Accounting Journal, 12(3), 87-102. doi: 10.18267/j.efaj.189
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