Sessional Research Event: A review of Solvency II - has it met its objectives? (London)

Built around the principles of market consistency and a strong risk management and governance framework Solvency II is currently the most sophisticated insurance regulatory regime in the world. Its original design though needed changes to make it acceptable for business with long term guarantees.

The working party has looked at the outcome of the final regulation and comments on how well Solvency II has fared relative to its initial goals of improved consumer protection, harmonisation, effective risk management and financial stability.  Solvency II represents a huge improvement over Solvency I although it has not fully achieved the goals it aspired to. There are acknowledged shortfalls and imperfections where adjustments to Solvency II can be expected.

There are concerns around Procyclicality, and the appropriateness of market consistency is still open to criticism. It is hoped that the paper and the discussion that goes with it provide an insight into where Solvency II has taken European Insurance regulation and the directions in which it could evolve.

Brexit, the Treasury Select Committee’s inquiry into EU Insurance Regulation and the EIOPA review of Solvency II are all reasons why you might wish to add your perspective to the discussion.