SOLVENCY AND CONTROL IN INSURANCE COMPANIES: A COMPREHENSIVE ANALYSIS FROM A LEGAL-TECHNICAL PERSPECTIVE

Abstract

This paper explores the guarantee-oriented function of insurance as a legal and economic institution aimed at protecting policyholders against risk, integrating technical, regulatory and doctrinal perspectives. Through six sections, it examines the evolution of the concept of insurance guarantees, the structure of technical provisions, the institutional role of the insurance contract, and the mechanisms of public supervision that ensure transparency and solvency across the sector. From a regulatory standpoint, the study analyses the legal requirements shaping insurance activities, particularly in relation to the establishment of reserves, prudent management of assets and fulfilment of solvency criteria. It further examines the insurance contract as a mechanism for balancing private autonomy with public oversight, underlining its social function and the need for a robust regulatory framework that safeguards the insured. Special attention is given to the role of the Directorate-General for Insurance and Pension Funds (DGSFP), whose structure and functions —as defined by Royal Decree 410/2024 and Law 40/2015— enable efficient and specialized institutional supervision. The analysis covers its powers in monitoring, authorization and regulatory development, as well as its proactive approach to emerging risks and technological challenges. The final section offers a critical reflection on the current insurance model and its future trajectory. It highlights areas for improvement in consumer protection, the reinforcement of complementary social security, and the development of regulatory instruments adapted to new market conditions. Insurance is presented not merely as a contract, but as a legal and social institution essential for maintaining the balance of the modern financial system.