Solvency II

Solvency II, which is expected to enter into force on 1 January 2013, will introduce a common European approach to prudential regulation based on economic principles for the measurement of assets and liabilities. It is a risk-based system, meaning that capital requirements are aligned with the underlying risks of the company.

The 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 which enhances policyholder protection as well as the competitiveness of the insurance sector and the wider European economy. The CEA is continuing to engage with the key stakeholders in the work on Solvency II, as it has at each stage of the legislative process, in particular representing the European industry's views in the political negotiations as well as in the regular Quantitative Impact Assessments.