Solvency II: Restructuring the Insurance Sector (Part 1)
The European Parliament and the Council of the European Council is in the process of voting on the directive regarding Insurance and Reinsurance, better known as Solvency II. This directive is making substantial changes to the insurance sector with regards to the European Union. Since it is a directive, member states are expected to reach at the same outcome, with some leeway being granted to the way they go about implementing it.
Peter Skinner, rapporteur “This legislation sets a modern global standard, way ahead of the banking system". "Insurance is about risk management and this directive is about controlling the risks management can take"
The Solvency II directive has made changes to the following previous directives:
Directive | Scope of the Directive |
| First Council Directive 73/239/EEC of 24 July 1973 | Coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance |
| Council Directive 78/473/EEC of 30 May 1978 | Coordination of laws, regulations and administrative provisions relating to Community co-insurance |
| Council Directive 87/344/EEC of 22 June 1987 | Coordination of laws, regulations and administrative provisions relating to legal expenses insurance |
| Second Council Directive 88/357/EEC of 22 June 1988 | Coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services |
| Council Directive 92/49/EEC of 18 June 1992 | Coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance (third non-life insurance Directive) |
| Directive 98/78/EC of the European Parliament and of the Council of 27 October 1998 | Coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance (third non-life insurance Directive) |
| Directive 98/78/EC of the European Parliament and of the Council of 27 October 1998 | Supplementary supervision of insurance undertakings in an insurance group |
| Directive 2001/17/EC of the European Parliament and of the Council of 19 March 2001 |