January 19, 2008 – 6:35 pm

Solvency II is both a concept and a process. The concept is very simple: that insurers and reinsurers should understand the risks inherent in their businesses and allocate enough capital to cover those risks.

Will Solvency II take into account the events that just occurred or will they have amnesia in 2010?

Solvency II will take a look at capital requirements, supervisory activities of regulators, and disclosure of additional information. If you consider the Hurricane Katrina damaged areas and the lack of faith in the claims paying willingness of insurers, will any similar event happen in Europe? Can Europeans count on insurance payouts or will the same barricades emerge? Any insight on the claims from the fires in Greece?

Post a Comment