Solvency II


The EU Solvency II Directive (2009/138/ EC) is a risk-based capital regime that aims to harmonise the prudential framework for insurance firms to promote transparency and comparability. It amends 14 previously existing Directives which are often referred to as ‘Solvency I’, and entered into force in January 2010, with implementation effective from January 2016. The primary concern of policy makers was the amount of capital reserves an insurance firm should hold in order to reduce the risk of insolvency. The key objectives of policy makers were to improve consumer protection, better evaluate insurers’ risk profiles and governance, as well as increase the international competitiveness of EU insurers.

In 2021, the Commission published a review proposal for the Solvency II Directive alongside a proposal for the EU-level harmonisation of recovery and resolution rules. An agreement on the update to the framework was reached in December 2023, seeking to revise the current framework with a focus on the prudential obligations of (re)insurance companies.

  • July 2007

    EC adopts Solvency II into Offcial Journal (OJ), consolidating 14 insurance related Directives

  • November 2009

    Directive 2009/138/EC (Solvency II Directive) published in OJ

  • November 2010

    EC released consultation paper on Level II proposals

  • October 2014

    Regulation (EU) 2015/35 (Solvency II Level II Regulation) published in OJ

  • June 2015

    EIOPA releases final guidelines for Solvency II

  • January 2016

    Solvency II goes live

  • March 2019

    Amendments to Solvency II regulation released by EC

  • Q3 2021

    Expected review of Solvency II as outlined in the OJ

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