Solvency II: an overview
A high-level overview of the regime under the Solvency II Directive (2009/138/EC) (also known as Solvency 2). The note includes a timeline outlining the key steps in the ongoing EU work to finalise the Solvency II regime, as well as a glossary of the main technical terms relating to Solvency II.
The Directive fundamentally reforms capital requirements for insurers and reinsurers. It establishes a more sophisticated, risk-based set of capital requirements across the EU, together with a modernised supervisory system. It is designed to provide better and more uniform levels of consumer protection and promote competition in the insurance market.
This note is in the process of being updated to reflect that on 2 December 2013, the Council of the EU published a note setting out the text of the proposed second Directive extending the transposition and application dates of Solvency II (known as the second Solvency II Quick Fix Directive), as provisionally agreed with the European Parliament on 13 November 2013 and adopted by the Parliament in plenary on 21 November 2013. For more information, see Legal update, Text of second Solvency II Quick Fix Directive as agreed by European Parliament and Council of EU published.