SOLVENCY II knocks on the door
Financial consulting firm KPMG has organized on the 23rd of June, in Bucharest, a seminar with the theme: implementation of Solvency II Directive. The event represented an opportunity for insurance companies' specialists to better understand the challenges facing them in terms of the new solvency system, which will be implemented until January 1, 2013.
"It is never too early to begin to prepare for all that is implied by the implementation of a Directive so important as SOLVENCY II", Serban TOADER, Senior Partner, KPMG Romania said.
The core objectives of Solvency II Directive are to increase the protection of the insured and, also, to create a harmonized monitoring system at European level, able to allow insurance companies throughout Europe to act on equal terms.
Thus, in practical terms, an insurer will no longer be able to operate if it is below the minium capital limit, requirement which reduces the risk for an insurance company to enter in insolvency.
In the context of applying the new European regulations, insurance companies in Romania have to rethink their strategies and risk management models. One of the most important themes in this respect is that of the capitalization of profile companies. Thus, one of the topics discussed with interest by KPMG's specialists was that of the eligibility of own funds to increase capitalization in line with the Solvency II regulations.
"The system will also bring organizational changes and will help increase customer's confidence in the profile companies, thus bringing the Romanian insurance market even closer to the European one", said Paul MITROI, General Manager, General Direction of Solvency Regulations and Implementation, ISC.
Author: Mihaela CIRCU
on 24.06.2010
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