The European Parliament has published a press release confirming the approval of the Solvency II Directive.

Solvency II is a revision of EU insurance and reinsurance law designed to improve consumer protection, modernise supervision, deepen market integration and increase the competitiveness of European insurers.

Under the new system, insurers and reinsurers would be required to take account of all types of risk to which they are exposed and to manage those risks more effectively and with increased transparency. In addition, insurance groups would have a dedicated 'group supervisor' that would enable better monitoring of the group as a whole.

View Solvency II: better financial supervision of the insurance industry, 22 April 2009