The new Solvency II system of insurance supervision entered into force on 01.01.2016. The intended result of this European Union-wide project is a fundamental reform of insurance supervision law, in particular the solvency regulations (own funds requirements) for insurance and reinsurance undertakings. The previous static system for the determining of own funds requirements is to be replaced by a risk-based system. In particular, qualitative elements (e.g. internal risk management) are intended to be taken into account on a far greater scale. Furthermore Solvency II also strives to achieve an appropriate level of supervisory harmonisation in Europe.