Specialities in insurance market regulation

Insurance market regulation is complicated topic especially because of the view differences and its width. Insurance market is part of financial systém and has two main roles. The first one is the role of passive actor as money administrator for clients and the second and more important one as active participant of business on whole financial market -- business partner and investor. Due to this, minimal partial regulation is needed. Insurance market is managed by the law n. 277/2009 with touch in European directive Solvency I. ČNB is in charge of controlling the insurance market in Czech Republic. Czech national bank deals with controlling and implementation of new regulation requirements. Insurance companies from the countries of the European Union are controlled by home supervisors and have only information duty to Czech national bank. At this moment Solvency II is in implementation process in countries of EU. Solvency II is structured by bank regulation directive Basel II that is based on risk management. Newly implemented capital requirements calculation is joined with sophisticated risk models, which contain every quantifiable risk. Solvency II requires also big changes in companies' internal processes and it takes huge amount of cost. Especially new qualified staff, upgraded software and new administrative process. Small insurance companies are protesting against Solvency II. The biggest problems are capital requirements which are too high for this companies and they are afraid of losing competitiveness and their downfall. Some updates are expected after implementation of Solvency II and evaluation of the forthcoming effects. This can show new ways in insurance market regulation to future