Solvency II: What is Solvency II?
Solvency II is the new regulatory regime that is to be introduced for insurers and reinsurers in 2010. It is intended to provide a consistent harmonized framework for regulation of insurers and reinsurers across Europe. It is built on a risk-based approach to setting the capital requirements for insurers, starting from a consistent valuation of both assets and liabilities at market value.
The proposed framework has three pillars (similar to the framework of Basel II for banks). These are:
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Pillar 1 – quantitative capital requirements
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Pillar 2 – qualitative risk management requirements and supervisory review
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Pillar 3 – disclosure requirements
- A framework Directive will be published in Summer 2007, with implementation by Member States expected in 2010
Contact
Please contact Nina Muelders for more information about KPMG's Solvency II services.