7. Analysis of Capital Requirements in Life Insurance Sector Under Solvency II Regime: Evidence from Poland

The main aim of this chapter is to examine the first years of the implementation of Solvency II capital requirements driven by the standard formula. The analysis covers the Polish life insurance market. Since the introduction of Solvency II in Poland, the insurance market has been challenged to implement many of the recommendations as well as maintain an adequate level of capital. This chapter will present an analysis of the level of capital requirements, their evolution, the eligible own funds needed to cover them, and the decomposition of those requirements from 2016–2017 in Poland (since the implementation of Solvency II). It will do so by drawing upon real data provided by insurance companies in the solvency and financial condition report, which all insurers are obliged to publicly disclose.