Europe’s insurers get used to a stricter regime

Regulators are increasingly bearing down on insurers as the market looks to establish better risk management practices. With the Solvency II proposals being drafted, what are insurance companies doing to make sure they can comply with the stricter regulations and improve on their existing risk management?

Regulatory pressure is currently the major driver of risk management changes in the insurance industry. Most regulators have begun to appreciate the need for having an explicit set of standards to govern risk in the sector, as have been established in the banking sector with Basel II.

With the EU currently mulling over its Solvency II proposals (see box) and national governments, such as those of the UK, the Netherlands and Switzerland, passing new regulations, regulators have taken strong steps