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Solvency Margin in Insurance Field – The Need for IFRS Compliance

Author

Listed:
  • Sahlian Daniela Nicoleta

    (Academy of Economic Studies)

  • Stanila Georgiana Oana

    (Academy of Economic Studies)

  • Ispas Simona

    (Academy of Economic Studies)

Abstract

The framework for insurance and reinsurance now in use needs updating. The proposal for a new solvency framework, called Solvency II, is introducing a risk- sensitive approach, taking into account optimal allocation of capital market, consistent valuation of assets and liabilities ("fair value" concept), timely calculations and more transparency, in accordance with the IFRS. The purpose of the paper is to offer a practical approach of calculation and reporting regarding the main liquidity and solvency indicators for implementing the Solvency II model at national scale. The study having a predominant methodological qualitative fundament based on casuistic and experience of national and multinational companies operates on the wide field of insurances. High value of the research is produced by the new approach of calculation and reporting solvency margin based on risk management, which is a beginning in Romania, lining up to international accounting insurances research.

Suggested Citation

  • Sahlian Daniela Nicoleta & Stanila Georgiana Oana & Ispas Simona, 2013. "Solvency Margin in Insurance Field – The Need for IFRS Compliance," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 1480-1485, May.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:1:p:1480-1485
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    More about this item

    Keywords

    fair value; adequacy of capital; solvency margin; risk management ; Solvency I;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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