Risk, capital and technical reserves for insurance companies

Insurance market has a small percentage in financial markets in Turkey while it has a big portion in western Europe and in United States of America. Insurance sector has been growing with a steady pace but it is still not as a big as banking sector in Turkey. In this paper; activities, fundemantel features and the risks that they faced of the insurance companies are examined in order to discover and understand the sector. In addition, the main characteristics of the capital adeuacy and solvency models which have been used for to protect the policyholders examined. And also the models which have been used in European Union and United States of America are analyzed in detail because of the reason that these ones are the importa nt ones among the models. In other parts of this paper, technical reserves and and other financial issues related with the insurance companies in Turkey are also analyzed and they are compared with the ones in European Union. The last part of the work is for the current status and financial figures of the insurance companies in Turkey. Keywords: Insurance, reinsurance, risk, capital adequacy, solvency margin, technical reserves, financial strength