The Problem of Solvency in Life Assurance

Abstract

In the train of the economic integration of Europe, a lively discussion has, for some time, been carried on about appropriate criteria of solvency for insurance undertakings in respect of life and non-life assurance. The conflict over the proposals for solvency requirements in non-life assurance still occupies the foreground. Here it is the proposed directive put up for discussion by the E.E.C. authorities which is of particular importance. This directive puts forward quantitative conditions for the solvency reserves of companies carrying on non-life business.