Insurance Companies’ Solvency Management within the Framework of Logistic Capital Management Theory

Various models of economic growth, addressing the growth trends of country\'s economy, production, population and other structural objects are focused on the mathematical description of growth rates, taking into account the initial state of the object. One of the solutions to the capital growth rate assessment problem is offered by logistic capital management theory, which is based on the assumption that under the real circumstances the capital usually cannot grow at the same pace for a long time. The article presents an insurance companies’ logistical solvency management model, prepared in accordance with provisions of the logistic capital management theory adjusted in the field of insurance. This model is structurally divided into three main elements: (a) the insurance company\'s solvency assessment, (2) logistical capital management decisions (3) provisions of the Solvency II project. Logistical insurance companies’ solvency management model shows capital management solutions’ implementation capabilities in the insurance sector, focusing on insurance solvency assessment. This model allows to determine the insurance company’s solvency in respect to the portfolio of an individual client, insurance type and all company, compared the estimated need for insurance benefits (discounted at the current value) with the factual capacity of the insurance company, i.e. available resources to ensure solvency. Also, this model allows planning the insurance activity by making insurance pricing, depending on the projected benefits and fees’ characteristics.