Solvency II will radically change the supervision of insurers and reinsurers across Europe. Under the Solvency II Framework Directive, existing insurance directives will be amended and recast in order to introduce a consistent, risk-based, solvency regime which better reflects modern solvency and reporting requirements.
The Solvency II Framework Directive, dated 25 November 2009, requires the provisions of the new regime to be in force by the end of October 2012. The Omnibus II Directive amends the deadline for transposition by Member States to 31 March 2015, with most of the rules becoming effective on 1 January 2016. This will ensure better alignment with the financial year for the majority of insurance and reinsurance undertakings.
The European Parliament adopted the Omnibus II Directive on March 11, 2014. The long-awaited plenary vote adopting Omnibus II was the last element needed to amend the Solvency II framework directive, granting additional powers to EIOPA and introducing a package of measures to support long-term products. Preparations are now well underway in anticipation of the new regime coming into force in 2016.
In this section of our technical resource we include an article, which considers the background to Solvency II, explains how it is structured and tracks the progress of the Directive. A glossary of frequently used terms is included, along with a summary of the issues that need to be addressed prior to implementation. We also include a series of short 'Ten things you need to know' briefings which provide immediate insight into the key issues of Solvency II. Additionally, we maintain a blog, which provides regular updates on Solvency II related developments.
For further information:
Understanding Solvency II
Ten things you need to know about Solvency II
Ten things you need to know about Solvency II: Governance
Ten things you need to know about Solvency II: Investments
Ten things you need to know about Solvency II: Capital Instruments
Blog: Solvency II