Analysis of the Solvency of Insurance Companies

The present research focuses on the scientific rationale and evaluation of insurers’ solvency. Solvency is a concept describing the ability of an insuring company to fulfill its financial obligation fully and timely, which is extremely important for insurance system stability, investor trust and consumer safeguard. Areas of analysis Analysis is provided on the basis of world practice, methods, regulations and empirical researches used in the CIS countries and Uzbekistan such as use of financial indicators, estimation level of sufficiency own funds and risk management. The relevance of the problem is determined by several factors: there are climate changes, pandemics and instability in financial markets on the world insurance market; as for Uzbekistan—extension of insurance services, modernisation of regulation process and development of interaction with other countries make solvency control even more urgent. The analysis based on financial ratios, the Merton model (Distance-to-Default), stress tests and hypothetical scenarios, Solvency II/RBC approaches, and expert judgment.The results of the study allow for determining the financial stability of insurance companies, assessing capital adequacy, and forecasting risks.