Значај мерења ризика адекватности премије при утврђивању солвентности неживотних осигуравача
Importance Of Premium Adequacy Risk Measurement In Determining Solvency Of Non-Life Insurers

Summary/Abstract: This paper provides a critical analysis of the quantitative approach to measuring insurance premium adequacy risk, which is based on the profitability indicators of insurers. Although developed in the mid-twentieth century, the considered approach is a basis for the so-called fixed ratio model, which is still used for determining the solvency of non-life insurers in the European Union, as well as in Serbia. Acknowledging the results of relevant empirical studies conducted in some European countries, the paper proceeds from the hypothesis of the existence of a deviation between the prescribed and the actually needed value of premium index, as a parameter of the fixed ratio model, on the Serbian insurance market. The aim of the paper is to quantify the impact of the identified premium indeks underestimation on the solvency assessment of non-life insurers. This provides a starting point for the establishment of a risk-based approach to determining the solvency of insurers in Serbia.

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