On June 10, 2007, the European Commission in Strasbourg formally introduced the Solvency II Directive. Solvency II proposes to modify current capital requirements for insurance companies. Specifically, it will replace longstanding industry-wide benchmarks with an individualized risk-based approach that tailors each company’s capital to its own risks. This may reduce the amount of capital that some insurers are required to maintain in support of their insurance obligations. If approved, the Directive will take effect in 2012.
Click here to read more about the Solvency II Directive.