Solvency II

Solvency II is the EU’s harmonised prudential framework for insurance companies, introduced in 2009, in effect since 2016, and with constant amendments and updates since then. It applies to life and non-life insurance companies as well as reinsurers. The prudential requirements introduced by Solvency II are tailored to the specific risks of each insurer. The rules promote transparency, comparability and competitiveness. The Solvency II directive covers three main areas: risk-based capital requirements, governance and risk management requirements, and supervisory reporting and public disclosure.