Solvency II has been drawn up by the European Commission after a consultation with Member States, regulating the life, non-life and reinsurance business.
The Commission has proposed that a Basel II-type three-pillar structure should be adapted for regulating insurance firms:
• Pillar 1
Minimum Capital Requirements
Harmonised standards for the valuation of assets and liabilities, and the calculation of capital requirements.
• Pillar 2
Supervisory Review Process
To help ensure insurers h