The Solvency II Directive is responsible to protect the policyholders, to secure the financial stability, the modernisation of the supervision and the development of European integration of the insurance market by creating a single system for calculating capital requirements.
The analytical framework of “Solvency II” consists of three core modules (Pillars):
a) Pillar I: Quantitative Requirements – Supervision. Includes the methodology for calculating all the technical reserves of the company, the presentation of all assets and liabilities of the company, the calculation of all quantitative risks in which company is exposed and therefore the calculation of the minimum Solvency Capital Requirements, that reflects whether the company is able to meet all its insurance obligations and all the risks that it is exposed.
b) Pillar II: Qualitative Requirements – Supervision. Includes recorded all the processes of company’s Governance System and ensures the proper and prudent management of the insurance undertaking.
c) Pillar III: Disclosure Reports. Includes the financial statements and all the qualitative information which is necessary for both supervisors and consumers.
The company under the instructions of Solvency II Directive, has disclosured the Solvency and Financial Condition Report, which includes, for the reporting period, clear and brief summary of the performance of the company, the system of governance, company’s risk profile and capital management. The information is considered crucial and true and can be downloaded in the following link.