The development of methodological approach to management of capital adequacy of insurance company through reinsurance

Opeshko Nataliya Sergiivna
Postgraduate Student of the Finance and Credit Department,
Kharkov National University of Construction and Architecture, Ukraine

  • The article defines the essence of capital adequacy of insurance company. Theoretical aspects of estimation capital adequacy of insurer in accordance with the requirements of the Directive Solvency II are discussed. The methodological approach to management of capital adequacy of insurance company through reinsurance is developed in the article. The usefulness of using the developed approach for managing capital adequacy ratio is proved on the basis of conducted experiments.
  • capital adequacy, solvency capital requirement, own founds, reinsurance.
  • Download full text of the article
  • 1. Bojko, A. O. (2011). Perestrahuvannia iak mehanizm zabezpechennja finansovoi stiikosti strahovoi kompanii [Reinsurance as a mechanism to ensure the financial stability of the insurance company]. Extended abstract of candidate’s thesis. Sumy [in Ukrainian].
    2. Djachkova, Ju.M. (2010). Upravlinnia perestrahuvanniam dlia zabezpechennia finansovoi stijkosti strahovyka [Management of reinsurance to ensure financial strength of the insurer]. Extended abstract of candidate’s thesis. Doneck [in Ukrainian].
    3. Dyrektyva 2009/138/ES Solvency II Jevropejskogo Parlamentu ta Rady vid 25 lystopada 2009 roku [Directive 2009/138 / EC Solvency II European Parliament and of the Council of 25 November 2009]. (n.d.). dfp.gov.ua. Retrieved from http://www.dfp.gov.ua/746.html [in Ukrainian].
    4. Emelianova, E.B. (2007). Neproporcionalnoe perestrahovanie kak sistema finansovoj zashhity strahovoy organizacii [Non-proportional reinsurance as a system of financial protection the insurance company]. Extended abstract of candidate’s thesis. SPb [in Russian].
    5. Gamankova, O. (2006). Finansova stiykist ta platospromozhnist strahovoi organizacii [Financial stability and solvency of the insurance company]. Visnyk Kyivskogo nacionalnogo universytetu imeni Tarasa Shevchenka [Bulletin of Kyiv National University of Taras Shevchenko], 94-95,18-23 [in Ukrainian].
    6. Kozoriz, G. G. (2010). Kapital i kapitalizaciia strahovogo rynku Ukrainy [Capital and capitalization of insurance market in Ukraine]. Kyiv: UBS NBU [in Ukrainian].
    7. Narkaev, V.R. (2011). Perestrahovanie kak instrument obespecheniia finansovoi ustoychivosti strahovoy organizacii [Reinsurance as a tool to ensure the financial stability of the insurance company]. Extended abstract of candidate’s thesis. Moskva [in Russian].
    8. Rozporjadzhennja Derzhavnoi komisii z reguljuvannja rynkiv finansovyh poslug vid 15.07.2010 r. № 585 «Koncepcija zaprovadzhennja prudencijnogo nagljadu za nebankivskymy finansovymy ustanovamy» [Resolution of the State Commission for Regulation of Financial Markets of July 15,2010 № 585]. (n.d.). uapravo.net. Retrieved from http://uapravo.net/akty/postanova-osnovni/akt8tdd w7i/index.htm [in Ukrainian].
    9. Solvency II for reinsurance managers. (n.d.). thoughtleadership.aonbenfield.com. Retrieved from http://thoughtleadership.aonbenfield.com/Documents/201006_solvency_II_reinsurance_managers_full.pdf.
    10. Suprun, N. V. (2014). Upravlinnia kapitalom strahovyh kompanii [Capital management of insurance companies]. Extended abstract of candidate’s thesis. Kyiv [in Ukrainian].
    11. The impact of Solvency II on asset managers. (n.d.). ey.com. Retrieved from http://www.ey.com/Publication/vwLUAssetsThe_Impact_of_SolvencyII_on_asset_managers_January–011/$File/The%20Impact%0of%20Solvency%20II%20on%20asset% 20managers.%20January%202011.pdf.
    12. Tkachenko, N. V. Zabezpechennja finansovoi stiykosti strahovyh kompaniy: teoriia, metodologiia ta praktyka [Support of financial stability of insurance companies: Theory, Methodology and Practice]. Cherkasy: Cherkaskyj CNTEI [in Ukrainian].
    13. Zakon Ukrainy vid 07.03.1996 r. № 85/96-VR «Pro strahuvannia» [Law of Ukraine of March 07,1996 № 85/96-VR «On Insurance»]. (n.d.). zakon.rada.gov.ua. Retrieved from http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi ?nreg =85%2F96 [in Ukrainian].
  • Opeshko N. S. The development of methodological approach to management of capital adequacy of insurance company through reinsurance [Internet source] / N. S. Opeshko// Economic Processes Management: International Scientific E-Journal. – 2015. – № 1. – Access mode: http://epm.fem.sumdu.edu.ua/download/2015_1/2015_1_12.pdf