- The improvement in premiums is due to the increase in the life insurance sector, up 37.5%
- The DGSFP publishes for the first time data of the sector since the introduction on January 1 of the Solvency II requirements
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, up to 31,143 million euros. This increase has originated, fundamentally, in the branch of life (with a rise of 37.51%), according to the information published today by the General Directorate of Insurance and Pension Funds (DGSFP). This is the first time that data on the sector have 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 a high solvency under 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 in both life and non-life.
On January 1, 2016, Solvency II entered into force. It is a risk-based system in which prudential supervision is established based on a dynamic solvency, with principles and procedures for the calculation of capital requirements according to the level of risk managed, with the objective that the entities that operate in the market, do so with a solvency level appropriate to your specific risk profile. It is a prospective approach, capable of anticipating crisis situations well 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 objective of promoting the improvement of internal risk management by entities. In addition, requirements for information and transparency towards the market are established on the key aspects of the risks assumed by the entities and their management.
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