As of 1 January 2016 the new risk-based European supervisory framework for insurance – Solvency II – has become applicable.
Solvency II will result in a paradigm shift in companies’ risk cultures.
Well capitalised insurers will enable the sector to withstand unforeseen shocks.
By fostering good governance and risk management, Solvency II will enhance protection of consumers of insurance products.
Harmonised reporting and disclosure will provide supervisors with key information and enable their timely action.
The new regime will however not be a burden for smaller companies, thanks to its proportionality principles.
Gabriel Bernardino, Chairman of EIOPA, said: “Without a risk-based approach the European insurance supervision would be lagging behind international trends.
Now with Solvency II a modern, robust and proportionate supervisory regime will be implemented.
This is a huge step forward for enhanced policyholder protection and the single European insurance market.
Solvency II is the result of productive political and legislative negotiations over many years by the European Parliament, Commission and Council.
But it also reflects the work of EIOPA’s Board of Supervisors, which always kept the momentum to ensure preparations for Solvency II could be undertaken in timely fashion.
With the efforts of the National Competent Authorities (NCAs), Solvency II can now become reality in each Member State Also on the side of the insurance and reinsurance companies hard work was done and the good level of preparedness for Solvency II is a sign of their success.
However, this is not a time for complacency.
The regulatory phase of the journey is ending. Now EIOPA starts a new journey - towards consistent and convergent implementation of Solvency II across Europe.
Solvency II will result in a paradigm shift in companies’ risk cultures.
Well capitalised insurers will enable the sector to withstand unforeseen shocks.
By fostering good governance and risk management, Solvency II will enhance protection of consumers of insurance products.
Harmonised reporting and disclosure will provide supervisors with key information and enable their timely action.
The new regime will however not be a burden for smaller companies, thanks to its proportionality principles.
Gabriel Bernardino, Chairman of EIOPA, said: “Without a risk-based approach the European insurance supervision would be lagging behind international trends.
Now with Solvency II a modern, robust and proportionate supervisory regime will be implemented.
This is a huge step forward for enhanced policyholder protection and the single European insurance market.
Solvency II is the result of productive political and legislative negotiations over many years by the European Parliament, Commission and Council.
But it also reflects the work of EIOPA’s Board of Supervisors, which always kept the momentum to ensure preparations for Solvency II could be undertaken in timely fashion.
With the efforts of the National Competent Authorities (NCAs), Solvency II can now become reality in each Member State Also on the side of the insurance and reinsurance companies hard work was done and the good level of preparedness for Solvency II is a sign of their success.
However, this is not a time for complacency.
The regulatory phase of the journey is ending. Now EIOPA starts a new journey - towards consistent and convergent implementation of Solvency II across Europe.
