Insight
Title:
Solvency II
Description:
The Solvency II Directive (2009/138/EC) is an EU Directive that codifies and harmonises the EU insurance regulation - primarily the amount of capital that EU insurance companies must hold to reduce the risk of insolvency. (Note the potential impact of Brexit.)
Solvency II is likely to increase the capital adequacy requirements of Life Insurance and Lloyds Market insurance (more so than general insurers).
It is too early be sure of the impact and a period of consolidation and regulatory alignment is required.
PESTEL:
Political