Faut-il plus de capital en assurance ?

In the aftermath of the recent financial crises, capital has regularly increased and the European Insurance sector seems to be adequately capitalized. The implementation of the Solvency II represents a new step, with the introduction of a new capital standard, more in line with economic principles and more risk sensitive. Prudential balance sheets based on a more economic valuation relies on fair values but makes the supervision more delicate. Insurers? prudential own funds are now the result of complex calculations and are based on numerous assumptions that should be carefully assessed and closely monitored, by the undertakings and by the supervisor. Lastly, a particular focus is warranted regarding the insurers? capital management policies. They are particularly important in the current financial environment, with low interest rates and the risk of higher volatility and insurers should consider dividend policies as well as alternative capital financing methods. On this issue, new regulatory tools are available to undertakings, such as the ORSA (Own Risk and Solvency Assessment), to ensure an appropriate capital management policy and strengthen the dialogue with their Boards or their supervisors. Classification JEL: G22, G28.