Economica (Jan 2020)
THE IMPACT OF TRANSITION FROM SOLVENCY I TO SOLVENCY II OVER THE PREMIUM RESERVES IN GENERAL INSURANCE
Abstract
One of the most important purposes of any insurance company is to be solvable. The technical reserve represents the main part of the obligations of an insurance company, thus the correct evaluation of this item is primordial. The premium reserve is one of the main parts of the technical reserve having the purpose to cover all the future liabilities for the policies in force. The objectives of this article is to analyse the definition and the formula for the premium reserve according to Solvency I, the actual solvency regime in the Republic of Moldova and define the contribution of the new Solvency II for the initial reserve; its evaluation methods and the standard formula. The impact of Solvency II will be very significant, radically changing the view on the insurance premium reserves of the insurers from a retrospective to a prospective one.
