The Solvency II Directive introduced a new solvency regime that has applied since 1 January 2016 to about 5000 (re)insurance undertakings in the European Economic Area (EEA). Although the Solvency II Directive has no explicit requirements towards insurance intermediaries, it has implications on insurance intermediaries.
The Solvency II Directive introduces a three-pillar approach whereby:
Pillar One contains the quantitative requirements (capital, valuation in the Solvency balance sheet, own funds)
Pillar Two contains the qualitative requirements (governance, including risk management and the supervisory review process) and
Pillar Three: contains the transparency requirements (supervisory reporting and public disclosure)
BIPAR Academy - Article on Solvency II by Professor Karel Van Hulle (read more)
A summary of this article was presented at the BIPAR AGM in Prague on 16 June 2016. It is available on the BIPAR website.
Article on Solvency and Financial Conditions Report by Professor Karel Van Hulle (click here)