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Essay text:
An insurance company is solvent if it is able to fulfil its obligations under all contracts at any time (or at least under most circumstances). However, assessing solvency can be a challenge, as accurate estimates of the liabilities at the balance date may be difficult to determine.
Analysis of company solvency can be made from two indications: financial indications and non-financial indications. Financial indications are used to assess commercial insolvency ? the company being unable to pay all its debts as and when they become due. Non-financial indications are used to assess regulatory insolvency, which occurs when the company breaks the requirements imposed by legislation, supervising regulations and other laws...
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