THE TREATMENT OF SOLVENCY II IN THE OPERATION OF INSURANCE COMPANIES

Abstract

The adaptation of the first Non-Life Insurance Directive (Directive 73/239 / EEC) in 1973 and the Life Insurance Directive (Directive 79/267 / EEC) six years later were the first steps towards the harmonization of insurance supervision in Europe. The implementation of these directives results in the harmonization of solvency requirements in the EU member states. The Supervisory Mode of Solvency 1 was promoted by the Second and Third Directives (Directives 88/357 / EEC, 90/619 / EEC, 92/49 / EEC and 92/96 / EEC), which implement the freedom to provide insurance services in industry.  The basis of solvency in the EU was established in 1970. The notion of solvency, including the insurance sector itself, financial markets, regulatory approach, risk management techniques and accounting standards, has changed radically. The solvency regulation for insurance companies operating in the territory of the EU is based on the calculation and maintenance of a minimum solvency margin, which should enable control and monitoring of the required capital and the assumed risks (Jankovik, 2007). The current numbers confirm that insurance is a serious, stable and loyal partner of the citizens, the economy and in general of the whole society of our country. Insurance is gaining momentum in all spheres of human activity, increasing the number of participants in the insurance sector or the number of insurance companies as main pillar. The aim is to take a decisive steps to pave the way to an industry that conquers the industrial market by offering  stable insurance products, designed according to customer requirements.