Solvency II

Solvency II is a comprehensive regulatory framework implemented in the European Union to ensure that insurance companies remain financially stable and can meet their long-term obligations to policyholders. It requires insurers to hold sufficient capital, assess their risks accurately, and maintain transparent financial practices. By establishing strict guidelines for risk management and financial reporting, Solvency II aims to protect consumers and promote confidence in the insurance industry, ultimately contributing to financial stability across Europe.