Solvency II assumptions for increasing the international competitiveness of EU insurance industry

Abstract

This paper aims to analyze Solvency II quantitative impact study made under conditions of undergoing legislative changes in the insurance market of European Union, called Solvency II regime. The main contribution of this paper is to present the analysis of quantitative and qualitative requirements, which insurers will have to meet under new Solvency II regime, how to escape mistakes during implementation period. Implementation into practice Solvency II Directive will help to increase the international competitiveness of EU insurance industry as they could reallocate own funds according the results of potential decrease or increase in solvency requirement relative to the standard formula.