X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Many industry observers consider Solvency II to be a worthy attempt by European regulators to forge a more uniform approach to safety and soundness supervision. Its impact extends beyond Europe: It has influenced global-standard setters at the International Association of Insurance Supervisors and—though some of my former colleagues might dispute this—has even had an impact here in the U.S. at the National Association of Insurance Commissioners (NAIC).

See related blog: U.S. ORSA: What’s Next?

That said, many people, particularly at the NAIC, have voiced concerns that Solvency II so far is largely a theoretical exercise rather than a tried and true regulatory regime (notwithstanding certain countries that already have moved to risk-based regulatory frameworks, such as the UK, via its Individual Capital Adequacy Standards regime). The European Commission’s willingness to develop a full regime largely on paper differs from the NAIC’s approach of “tweaking” the U.S. regime via the Solvency Modernization Initiative. Moreover, timelines for its completion have been extended several times—and it is fair to say that Solvency II still has a long way to go before it is final.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.