The Models of Assessment of the Insurance Companies’ Activities
The article is aimed at assessing the impact of the Solvency II requirements on the Ukrainian insurance market and making a forecast of possible situations after the introduction of these requirements. To achieve the aim, the following tasks were set: to describe both the quantitative and the qualit...
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2020-02-01
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| Series: | Bìznes Inform |
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| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2020-12_0-pages-395_400.pdf |
| _version_ | 1818880145756258304 |
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| author | Bakalova Natalya М. |
| author_facet | Bakalova Natalya М. |
| author_sort | Bakalova Natalya М. |
| collection | DOAJ |
| description | The article is aimed at assessing the impact of the Solvency II requirements on the Ukrainian insurance market and making a forecast of possible situations after the introduction of these requirements. To achieve the aim, the following tasks were set: to describe both the quantitative and the qualitative requirements of the Solvency II in the EU and the conditions for their use in the Ukrainian insurance market; to predict a possible change in the insurance market of Ukraine under the influence of the Solvency II quantitative requirements, which was performed as a result of the presented research. It is specified that the «novelty» envisaged by the Solvency II, which is related to the use of internal models, is an important step in the different sense of the assessment of the activities of insurance companies. This assessment is dominated not only by the quantitative parameters, but also by the problem of generally recognized risk, to which company is inclined and which is ready to take over. However, a significant number of aspects of this approach still need to be closer defined. The criteria related to the use of internal models for the needs of the supervisory authority have so far had the nature of the initial assumptions, and the experience of insurance companies (using internal models for their own needs, not the needs of the supervisory authority) concerns only a small percentage of companies. The internal model allows the insurance company to independently determine the actual demand for the required amount of guarantee capital. However, internal models include certain risks. The most important types of risks to consider in the internal models are grouped as follows: technical and insurance risk; risk associated with assets; operational risk and other types of risk. It is projected that the implementation of the project is likely to face many more unexpected problems, but the idea itself is interesting and understood by both insurance companies and regulatory authorities. |
| first_indexed | 2024-12-19T14:41:19Z |
| format | Article |
| id | doaj.art-613504fdd9d64073aa643de6f87e3a32 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-12-19T14:41:19Z |
| publishDate | 2020-02-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-613504fdd9d64073aa643de6f87e3a322022-12-21T20:17:05ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2020-02-0112515395400doi.org/10.32983/2222-4459-2020-12-395-400The Models of Assessment of the Insurance Companies’ ActivitiesBakalova Natalya М. 0https://orcid.org/0000-0001-9914-4802Khmelnitsky National UniversityThe article is aimed at assessing the impact of the Solvency II requirements on the Ukrainian insurance market and making a forecast of possible situations after the introduction of these requirements. To achieve the aim, the following tasks were set: to describe both the quantitative and the qualitative requirements of the Solvency II in the EU and the conditions for their use in the Ukrainian insurance market; to predict a possible change in the insurance market of Ukraine under the influence of the Solvency II quantitative requirements, which was performed as a result of the presented research. It is specified that the «novelty» envisaged by the Solvency II, which is related to the use of internal models, is an important step in the different sense of the assessment of the activities of insurance companies. This assessment is dominated not only by the quantitative parameters, but also by the problem of generally recognized risk, to which company is inclined and which is ready to take over. However, a significant number of aspects of this approach still need to be closer defined. The criteria related to the use of internal models for the needs of the supervisory authority have so far had the nature of the initial assumptions, and the experience of insurance companies (using internal models for their own needs, not the needs of the supervisory authority) concerns only a small percentage of companies. The internal model allows the insurance company to independently determine the actual demand for the required amount of guarantee capital. However, internal models include certain risks. The most important types of risks to consider in the internal models are grouped as follows: technical and insurance risk; risk associated with assets; operational risk and other types of risk. It is projected that the implementation of the project is likely to face many more unexpected problems, but the idea itself is interesting and understood by both insurance companies and regulatory authorities.https://www.business-inform.net/export_pdf/business-inform-2020-12_0-pages-395_400.pdfinsurance marketinsurance companyinternal modelriskmodeling |
| spellingShingle | Bakalova Natalya М. The Models of Assessment of the Insurance Companies’ Activities Bìznes Inform insurance market insurance company internal model risk modeling |
| title | The Models of Assessment of the Insurance Companies’ Activities |
| title_full | The Models of Assessment of the Insurance Companies’ Activities |
| title_fullStr | The Models of Assessment of the Insurance Companies’ Activities |
| title_full_unstemmed | The Models of Assessment of the Insurance Companies’ Activities |
| title_short | The Models of Assessment of the Insurance Companies’ Activities |
| title_sort | models of assessment of the insurance companies activities |
| topic | insurance market insurance company internal model risk modeling |
| url | https://www.business-inform.net/export_pdf/business-inform-2020-12_0-pages-395_400.pdf |
| work_keys_str_mv | AT bakalovanatalyam themodelsofassessmentoftheinsurancecompaniesactivities AT bakalovanatalyam modelsofassessmentoftheinsurancecompaniesactivities |