INSURANCE DIRECTIVE PROMPTS RETHINK SOLVENCY II

摘要

The EU's Solvency II directive, agreed earlier this year and due to come into effect in October 2012, will comprehensively reform the prudential regulation and supervision of insurance. It is the biggest regulatory challenge that European insurers have faced for decades.rnThe directive's main objective is to force insurance companies to improve their risk management and set aside enough capital to cover all the risks they take. The intention is that better risk and capital management will reduce the likelihood of insurers failing, which in turn will improve protection for policy-holders and reduce the likelihood of market disruption.