- The improvement in premiums is due to the increase in the life insurance branch, with an increase of 37.5%
- The DGSFP publishes sector data for the first time since the introduction of Solvency II requirements on January 1
The insurance sector recorded in the first half of 2016 an increase in the volume of premiums of 17.29% compared to the same period of the previous year, to 31,143 million euros. This increase has originated, fundamentally, in the life branch (with an increase of 37.51%), according to the information published today by the Directorate General of Insurance and Pension Funds (DGSFP). This is the first time that data on the sector has been published after the entry into force on January 1 of this year of Solvency II, the new risk supervision system for the European insurance sector.
Spanish insurance companies also have high solvency according to this new calculation method: the entities have their own funds in the first half of 46,284 million euros, which is 2.2 times the minimum required by European regulations. On the other hand, the technical-financial result of the insurers recovers in the second quarter until reaching levels of previous years, due to the best technical results both in life and in non-life.
On January 1, 2016 Solvency II entered into force. It is a risk-based system in which prudential supervision based on dynamic solvency is established, with principles and procedures for calculating capital requirements according to the level of risk managed, with the objective that entities that They operate in the market, they do so with a level of solvency appropriate to their specific risk profile. It is a prospective approach, capable of anticipating crisis situations sufficiently in advance to make decisions in a timely manner.
Capital requirements are complemented by other requirements in terms of qualitative requirements. A new supervision system is established with the aim of promoting the improvement of internal risk management by entities. In addition, information and transparency requirements are established towards the market on the key aspects of the risks assumed by the entities and their form of management.
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