Solvency II Directive 2009
What is the Solvency II Directive 2009?
A legal act in European Union Law that summarises and harmonises the EU insurance regulation. The aim of this legislation is to combine the EU insurance market and better consumer protection. An EU passport was established which enables insurers to operate in all fully conditioned member states.
Where have you heard about the Solvency II Directive 2009?
The first solvency directive was introduced in 1973 but in time more positive risk assessments systems were established. The scope of the second directive is far wider than the first. One of these purposes includes the reduction of risk that an insurer wouldn't be able to meet claims.
What you need to know about the Solvency II Directive 2009.
There are a number of large life insurers in the UK that are not happy with the way that the Solvency II Directive 2009 has been developed. Specific concerns have been publicly expressed by the CEO of Prudential, the UK's largest life insurance company. The enforcement of market-consistent valuation approach in particular has been seen as an issue with American subsidiaries of UK companies. The main concern is that overseas subsidiaries could lose out to competition of their local peers, resulting in a sell off and leading to a “Fortress Europe”.
Find out more about the Solvency II Directive 2009.
If you are interested in the Solvency II Directive 2009, see at our page on risk management.