Solvency II was launched in 2001 by the European Commission of the European Committee and is a consequence of the changing financial and economic reality which has forced the debate on changes in the new system of the solvency of insurance companies. The analysis was the basics for the new system that is modelled on the Basel II determining capital adequacy rules for the banking sector.

This project is a part of "Financial Services Action Plan”. Its grounds were set out in the document of the European Commission no MARKT/2509/03 of March 2003, which is the result of nearly two years ongoing analytical and conceptual work. Solvency II defines standards of many insurance companies’ activities. The most important issue is the principle of measuring the solvency and capital requirements for insurance institutions. In addition to the capital adequacy, the document also offers standards for construction and development of risk and capital management systems and the reporting rules. Solvency II is modelled on the experience of the banks to develop a standardized model for risk management, supervisors’ privileges and the necessity to inform the market about these findings and the records contained in the New Capital Agreement taking into account sectoral differences. The main idea of Solvency II is more precise capital dependance on the size of the risk undertaken by insurance companies. Methods of reporting insurance companies in different countries are unified.

Since 2007 insurance companies have had to introduce new requirements for solvency gradually and since 2012 Solvency II will be fully in force.

BSB has a well-established experience in the risk management area of insurance sector. The market forces its participants to use the systems of the highest quality and to adapt to the regulations and law. In this area, in addition to our dedicated products we offer consultancy and trainings.

We provide

• consultancy and trainings on, among others: interest rate risk, currency risk, liquidity risk, actuarial risk, asset and liability management, operational risk,
• analytical and consulting services to implement best practices and support for the different stages of the risk management including: risk identification, measurement, monitoring, reporting and management activities,
• comprehensive systematizing of risk management within the organization.