Keywords
solvency margin
insurance companies
indicators
premiums
losses
reinsurance
How to Cite
Abstract
This article gathers the ideas presented by Herfield Schlude related to the rules of solvency for non-life insurers of the then existing European Economic Community. Schlude presents a general summary of the margin of solvency and links the form in which both premiums and losses indicators were selected, determination of the cited margin and the form in which the influence of the reinsurance was taken into account. Schlude shows as well the advantages and disadvantages of the system established in 1978.
The article has special relevance for the Colombian insurance market as presently most of the system is used and advantages and disadvantages thereof are applicable and specially because the Colombian Finance Superintendence has introduced changes to the margin by adding a capital requirements for credit and market risks without introducing any modification to the subscription risk, the sole risk that the current methodology takes into account.
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