The Solvency II Directive (2009/138/ EC) (Solvency II) came into effect on 1 January 2016. Solvency II codifies and harmonises EU insurance regulation and sets new standards for the amount of capital that (re)insurance firms must hold based on their risk profile as well as new standards for governance, risk management and supervision, and reporting and transparency. The Central Bank commented that: “The implementation of Solvency II is a significant challenge for firms as they will need to increase the sophistication of their risk management systems. Overall, it represents a very positive and welcome development for the industry requiring firms to place risk at the heart of decision making and embed a more risk aware culture within their businesses.”
A link to the Central Bank press release is here.