Law Atlas

How The Law Decides
Sign In
Text size
100%
Theme
Regulation

Solvency II Directive

Financial and Securities Regulation

The Solvency II Directive is a European Union directive, which took effect in January 2016, that establishes a harmonized framework of capital requirements, governance standards, and risk management rules for insurance and reinsurance companies operating within the European Economic Area. It replaced a patchwork of earlier European Union insurance directives and is structured around three pillars covering quantitative capital requirements, supervisory review, and public disclosure. Solvency II is intended to ensure that insurers hold sufficient capital to meet their obligations to policyholders even under adverse conditions.

Facts
EraSourced to the subject's own account
Adopted 2009. 1
Promulgated BySourced to the subject's own account
European Union (European Parliament and Council). 1
Jurisdiction ScopeSourced to the subject's own account
European Union member states; applies to EU insurance companies. 1
Regulatory DomainSourced to the subject's own account
Insurance company capital requirements to reduce the risk of insolvency. 1
Classification
Legal StatusSourced to the subject's own account
amended 1
Legal StatusSourced to the subject's own account
in-force 1
Jurisdiction Scope
Jurisdiction Scope (category)Sourced to the subject's own account
EU / EEA Member States 1
Era
Era (category)Sourced to the subject's own account
21st Century (2000-Present) 1
Connections

Associated With

Basel Accords, Regulations

Solvency II is widely described as the insurance-sector analogue to the Basel Accords bank capital framework

The Court of Justice of the European Union is the final interpreter of the Solvency II Directive as EU law.

In Legal System

European Union directive, applied across member states whose domestic systems are predominantly civil law.

Source Major Legal Systems in the World TodayRene David and John E.C. Brierley
Sources
1. Solvency II Directive 2009 (Wikipedia)
Wikipedia
  • Introduction
    Solvency II Directive 2009 (2009/138/EC) is a Directive in European Union law that codifies and harmonises the EU insurance regulation. Primarily this concerns the amount of capital that EU insurance companies must hold to reduce the risk of insolvency.
  • In Group: European and International Financial Regulation, Introduction, sentence 1
    Solvency II Directive 2009 (2009/138/EC) is a Directive in European Union law that codifies and harmonises the EU insurance regulation.
View the Source
Major Legal Systems in the World Today
Rene David and John E.C. Brierley, Stevens and Sons, 1985In Legal System: Civil Law

Take a Related Quiz

Comments (0)
No comments yet. Be the first to share a thought.
Reader Challenges (0)
No disputes yet. Spotted an error or a better source? Open the first one.