Solvency II, the European Commission’s planned reform of prudential regulation for European insurers is well under way. The intention is to revise and extend existing solvency rules in Europe for life, non-life and reinsurers.
Structured around
three pillars, Solvency II will substantially overhaul the way the insurance industry is regulated across Europe. It will be a risk-based, forward-looking regulatory regime founded on a market-consistent approach. Companies will be encouraged and given incentives to run their business with an increased focus on risk, governance and further transparency through disclosure.
The European Commission published its formal draft proposal for a Framework Directive on 10th July 2007. Please see relevant links below:
If all goes according to plan, the Commission expects Solvency II to be implemented no later than 2012.
The impact of Solvency II on your business will affect:
- Risk appetite
- Capital allocation/Tax
- Performance improvement
- Market reporting
- Ratings
- Governance
PricewaterhouseCoopers is at the forefront of the current debates and has a
multi jurisdictional team of professionals who are available to assist you with every aspect of your preparations for Solvency II.
