Solvency II regulations get the green light
The European Union has formally approved the Solvency II Framework Directive, clearing the way for consistent insurance regulation across Europe.
Solvency II is an updated set of regulatory requirements for insurance firms that operate in the European Union. The legislation is intended to support the development of a single market for insurance services in Europe which is scheduled to commence in October 2012.
Ratification by the EU Economic and Financial Affairs Council last week followed earlier approval from the European Parliament.
European insurance and reinsurance federation Deputy Director-General Alberto Corinti says European insurers are “delighted” at the prospect of a modernised regulatory system.
“Solvency II represents a huge leap forward, creating a harmonised, risk-based regulatory regime for Europe,” he said.
The new system is based on economic principles for the measurements of assets and liabilities, and measures risk based on consistent principles including minimum capital requirements.
Solvency II is an updated set of regulatory requirements for insurance firms that operate in the European Union. The legislation is intended to support the development of a single market for insurance services in Europe which is scheduled to commence in October 2012.
Ratification by the EU Economic and Financial Affairs Council last week followed earlier approval from the European Parliament.
European insurance and reinsurance federation Deputy Director-General Alberto Corinti says European insurers are “delighted” at the prospect of a modernised regulatory system.
“Solvency II represents a huge leap forward, creating a harmonised, risk-based regulatory regime for Europe,” he said.
The new system is based on economic principles for the measurements of assets and liabilities, and measures risk based on consistent principles including minimum capital requirements.