How Insurance Companies Meet Solvency II Requirements? Evidence from The Polish Non-Life Insurance Market

In the European insurance market, according to Solvency II system, the insurers are obliged to disclose the Solvency and Financial Condition Reports (SFCR), including some Quantitative Reporting Templates (QRT). In the paper, an analysis and evaluation of solvency adequacy for nonlife insurance companies operating in Poland is presented. The selected measures such as the Solvency Capital Requirement (SCR) ratio and the Minimum Capital Requirement (MCR) ratio as well as the components of the Solvency Capital Requirement were examined in order to evaluate the solvency positions of the analysed insurers. The conducted research showed that almost all non-life insurance companies in Poland met the obligatory requirements and have had the required coverage of capital requirements by their own funds. It also highlighted the importance of underwriting risk and market risk for non-life insurance sector. The obtained results may be useful for insurance market entities, researchers as well as for customers seeking transparency in the solvency of insurance companies, in particular those whose policy they already have as well as those in which insurance purchases they are considering.