ROLE OF CAPITAL IN SUPPORTING THE INSURANCE COMPANY'S BUSINESS THROUGH THE SOLVENCY PRUDENTIAL FRAMEWORK

Lina ȘIȘCANU, Tatiana MACOVEI Universitatea de Stat din Moldova

Abstract

The general insurance principles indicate that an insurer should be able to recognize, measure, manage and mitigate the risks it faces. Capital is a way of supplying resources against such risks and is therefore a form of risk mitigation that contributes to the sound management of insurance companies, to the qualitative supervision of authorities and to insurers' confidence in the insurance market. Keywords: capital, solvency, insurance companies, risks, patrimony