Solvency II : an illustration

Abstract

This thesis focuses on Solvency II and the implications for life insurance. We first give an introduction to insurance and life insurance in general. Then we describe the balance sheet of a life insurance company. We also explain the need for a new framework as well as the participants behind it. Subsequently we focus on the solvency term. In the future the solvency assessment will be more closely related to the risk exposure of a company, thus we give a thorough description of the various risks facing life insurers. To illustrate the different aspects of the framework we have used the life insurance company Vital.