Solvency II
Solvency II Insurance Supervision Regime
On 1 January 2016 a fundamental reform in insurance supervision law entered into force with the introduction of Solvency II. In particular the own funds requirements (solvency regulations) for insurance and reinsurance undertakings are affected. The previously existing static system for the determining of own funds requirements was replaced by a risk-based system. Qualitative elements, such as, for example, internal risk management are required to be afforded stronger consideration. Under the new supervisory regime, it is intended to achieve greater harmonisation of supervision in Europe.
