Author(s): Gabriel Bernardino
Date published: Sep 2018
SUERF Policy Note, Issue No 42
By Gabriel Bernardino, Chairman, EIOPA
The introduction of Solvency II was a challenge and the biggest change in the history of the European insurance industry. We will all agree that the implementation of the risk-based regulatory regime in 2016 was a significant improvement compared to the previous framework and brings a number of benefits for the insurance industry and importantly for the consumers.
Thanks to Solvency II, the insurance industry is now much stronger, has capital better aligned to the risks, uses a risk-based approach to assess and mitigate risks and can therefore better price them.
The insurance industry has also strengthened the governance models, with the requirements to establish key functions and greater involvement of Boards which are now playing a completely different role. This increases the understanding of the business and risk environ-ment in which the insurance companies are operating.
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