Solvency assessment of insurance companies

Abstract

The research deals with an important aspect in the work of insurance companies, as the ability to compensate the insured for them when they are exposed to the risks insured against them is extremely important that affects the continuity of this companies, in order to face this risks, as set of procedures has been established, including solvency, the study touched on the theoretical side of the development of how to measure solvency in insurance companies and the importance of solvency margin as a minimum that guarantees the rights of believers and the continuity of their activity, as for the applied aspect, a presentation and analysis of how to measure solvency in the SAA company was presented based on the company’s annual report, the study concluded several results, the most important of wich are : the fragility of the solvency system in Algerian insurance companies, despite the development witnessed, we recommend the reform in line with the acconting reform regarding the rules of solvency measurement and the importance of disclosing the solvency of insurance companies and insurers as a right befor and after insurance contract