Assessment of the Stability of Insurance Companies: the Case of Baltic Non-Life Insurance Market
58th International Riga Technical University "Scientific Conference on Economics and Entrepreneurship SCEE '2017": Proceedings 2017
Ilze Zariņa-Cīrule, Irina Voronova, Gaida Petere

The purpose of the research is to summarise stability statistics on solvency ratios, risk profiles, capital surplus which was contained in Solvency and Financial Stability reports 2016 published first time by nonlife insurance companies in European Union and Baltic market (Latvia, Estonia, and Lithuania). Solvency II has come into force in 2016 and these reports were prepared using new requirements of the Solvency II framework. All non-life insurance companies are required to have eligible own funds at least equal to solvency capital requirement (SCR) in order to avoid supervisory intervention (own funds divided with SCR are required to be at least 100%). Baltic non-life insurance companies are strong capitalized (median 155%) in 2016. It means that all Baltic companies can survive even if 1 in 200 years events have incurred although Baltic solvency coverage ratio is lower than median ratio in European Union (210%). For Latvian non-life insurance market solvency ratio median is even the lowest in European Union comparing by countries. The authors have analysed the market historical development and have calculated financial results ratios, Gini’s concentration index, and dissimilarity index, too. The authors have investigated internal, external risks and issues for Baltic non-life insurance market now and in next future such as political environment, low yield environment, market competition because of new M&A activities, new rule for accounting for insurance companies IFRS17.


Atslēgas vārdi
Baltic non-life insurance market, Solvency II Directive, risk management, capital management
Hipersaite
http://alephfiles.rtu.lv/TUA01/000060383_e.pdf#page=135

Zariņa, I., Voronova, I., Pettere, G. Assessment of the Stability of Insurance Companies: the Case of Baltic Non-Life Insurance Market. No: 58th International Riga Technical University "Scientific Conference on Economics and Entrepreneurship SCEE '2017": Proceedings, Latvija, Riga, 13.-13. oktobris, 2017. Riga: Riga Technical University, 2017, 135.-136.lpp. ISBN 978-9934-22-000-5. ISSN 2256-0866.

Publikācijas valoda
English (en)
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