Quantifying premium risk faced by the Kenyan Insurance companies using the solvency 2 directive
Date
2014-03-19
Authors
Ng'ang'a, Catherine Muthoni
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Solvency 2 is an EU Directive that is concerned with the amount of capital that European Insurance Companies must have to reduce the risk of Insolvency. It applies to all European Union insurers and reinsurance companies with gross premium incomes exceeding €5 million or gross technical provisions in excess of €25 million. It aims to strengthen EU- wide requirements on capital adequacy and risk management for insurers. Solvency 2 was developed because of the inadequacies of solvency 1. In Solvency 1 capital requirements were based on simple specified solvency margins (as is the case in Kenya) which were not risk sensitive. One of the major objectives of solvency 2 is to align capital requirements with the underlying risks faced by an insurance company.
Description
A Research Proposal submitted in Partial fulfillment for the award of Bachelor of Business Science Financial Economics
Keywords
Premium risk, Kenyan Insurance Companies, Solvency 2 Directive