Solvency I and II

The single European market has been developing since the 1970s a common directive called Solvency I. This directive was designed to harmonize the rules of solvency for European insurance and reinsurance companies.

SolvencyIn February 2002, the "Solvency I" scheme was adopted. In practice, the requirements of this directive quickly proved to be limited, especially after the 2002-2003 financial crisis. The European Union then started a project of global reform of the European insurance regulation.

The new directive, called "Solvency II", was voted in April 2009 and came into force on 1 January 2016. The objective was to better adapt the shareholders’ equity of insurance companies to the risks they incur.

In November 2018, the European Commission launched a consultation to amend Solvency II.

After consultation, the European Insurance Authority “EIOPA” proposed a new draft of Solvency ll for June 2020. Due to the health crisis, this reform was postponed to a later date.

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