Solvency II
Solvency II, is a fundamental and wide-ranging review of the current insurance Directives.The aim is both to enhance policyholder protection and increase competition in the EU insurance market by updating the approach taken to determine the capital an insurance undertaking should hold against unforeseen events. The Directive also aims to enhance the supervisory review process.
Solvency II is expected to introduce a common European approach based on economic principles for the measurement of assets and liabilities. In order to meet its objectives, it will need to be a risk-based system, meaning that risk is measured on consistent principles and that capital requirements are aligned with the underlying risks of the company.
CEA's contribution to the debate on Solvency II is aimed at ensuring that Solvency II seizes the opportunity to deliver a true risk-based economic framework for insurance supervision, with its attendant advantages for policyholders, the competitiveness of the insurance sector and the wider European economy.