Solvency II proposal released

The EU Commission has published its proposal for Solvency II, a regulatory framework for the insurance industry that uses Basel II’s three-pillar structure.

Under Solvency II insurers would be required to take account of all types of risk to which they are exposed and to manage those risks more effectively. They are also required to employ a dedicated group supervisor that would enable better monitoring of the insurance group as a whole. The Commission aims to have the new system in operation

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