Solvency II

  • Solvency II came into effect on 1 January 2016
  • Europa - Risk management and supervision of insurance companies (Solvency 2) - [link]
  • Bank of England - Solvency II- [link]
  • 2006 - JIR / NAIC - Modernizing Insurance Solvency Regulation: Evidence from the UK - 21p
  • With respect to insurance companies, Douglas et al. (2017) study the impact of Solvency II regulation on the way that UK life insurers adjust their portfolio in periods of distress.  (p4)

2022 02 - BOE - Modelling fire sale contagion across banks and non-banks, Staff Working Paper No. 878 - 37p

Douglas, G., Noss, J., and Vause, N. (2017). The impact of solvency ii regulations on life insurers’ investment behaviour. Bank of England Staff Working Paper No. 664.

  • (p42) - 137. Solvency II is the EU’s insurance markets directive, designed to unify insurance regulation and reporting across each Member State.
    • The UK is still applying regulations derived from Solvency II, the European framework for insurance regulation.182
    • It was criticised for creating large compliance costs for insurance companies.
    • The UK insurance sector has consistently lobbied for changes in how Solvency II is designed, and how its regulatory implementation is interpreted.
    • The Treasury and regulators have already begun work on reforms to the onshored UK insurance regulation. The European Union itself has
      begun a process of reforming its own Solvency II directive.183

2022 - House of Commons - Treasury Committee - Future of financial services regulation, First Report of Session 2022–23 - 68p