Three-pillar structure to be applied to EU insurance regulation

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

To continue reading...