Insurance companies continue their activities as providers of protection against financial and economic risks. While insurance companies provide protection against such risks, they also face various risks. Such risks manifest themselves as insurance risks and financial risks specific to insurance. Financial risks are among the risks that insurance companies are heavily exposed to. Exposure to financial risk has also revealed the need for optimal capital arrangements. Capital regulations, technical provisions are not sufficient if insurance companies are exposed to risk. Various regulations and rules were introduced in the European Union Single Insurance market in the 1970s. The first of these regulations came into force until 2004 for member states as Solvency I. Since Solvency I could not establish a risk-based capital standard for insurance companies, Solvency II (Liability Covering Adequacy) standards started to be discussed. The main principle of Solvency II is to make a risk-based target capital calculation. Solvency II are risk-based capital adequacy regulations of insurance companies. The risk-based approach ensures that the capital required by the insurance management is determined in the most accurate way. While the target capital is calculated according to the Solvency II system in the European insurance market, this system has not yet been implemented in Turkey. In this study, risk measurements and capital requirements of six insurance companies operating in Borsa Istanbul are calculated according to Solvency II. Interest, stock, real estate, loan and foreign currency positions of insurance companies are taken as basis in calculations. The results obtained give the target capital amounts that insurance companies should keep based on market risk. The target capital amount obtained with the Solvency II method has been compared with the amount made according to the current capital adequacy calculations in effect. The capital amount calculated on the basis of risk was higher. The inclusion of market risks in target capital calculations increases the amount of capital liabilities. Market risk-based target capital amounts can identify and prevent possible liquidity and bankruptcy problems that insurance companies may encounter

Solvency II, piyasa riski, risk bazlı sermaye, sigorta şirketi.