Solvency II’s Quantitative Requirements – How to Comply

• By: Staff Editor
• Date: December 01, 2011

The Solvency II Directive lays down the amount of capital that insurance companies in EU must hold in their reserves so that the risk of insolvency is reduced. The legislation aims to unify the EU insurance market into a single entity and enhance consumer protection. Solvency II was approved by the European Parliament on 22nd April, 2009 and is scheduled to come into effect from 1 January, 2013.

This article describes the best practices to be followed in order to comply with Solvency II's quantitative requirements.