Little did I expect researching catastrophe bonds could leave one feeling like a cat chasing its tail – but that’s exactly how I felt when I discovered something known as Solvency II.
…the European Union Commission has now released the first draft directive of Solvency II – the most far-reaching change to the framework governing insurance companies in the EU for over 20 years.
However, Solvency II is not only a far-reaching change to the framework governing insurance – it’s an entirely different frame that’s had considerable influence on the discussion taking place in this country.
Solvency II is the updated set of regulatory requirements for insurance firms that operate in the European Union.
The rationale for European Union insurance legislation is to facilitate the development of a Single Market in insurance services in Europe, whilst at the same time securing an adequate level of consumer protection.
Solvency II will be based on economic principles for the measurement of assets and liabilities. Continue reading “Like a cat chasing its tail…”