Solvency II Directive

The Solvency II Directive is a European regulation aimed at ensuring that insurance companies are financially stable and able to meet their long-term commitments to policyholders. It requires insurers to hold enough capital to cover risks and potential losses, enhancing consumer protection. Solvency II establishes risk-based capital requirements, promotes good risk management practices, and mandates greater transparency and accountability for insurers. By doing so, it helps maintain confidence in the insurance sector and ensures that companies can fulfill their obligations, even in challenging financial conditions.