Solvency II Framework
For European insurance companies, Solvency II introduces a new set of regulatory obligations. We handle this comprehensive program of insurance regulatory requirements at Corporate Biz Solutions. We authorize the insurers and oversee corporate governance, public disclosure, risk assessment, and management. Its primary objective is to harmonize the capital requirements and risk management standards of the insurance sector.
The primary objectives of Solvency II are as follows:
- Improved consumer protection: Policyholder protection will be standardized and improved throughout the EU due to this initiative. Policyholders will have more faith in insurers' products if the system is stronger.
- Modernized supervision: Instead of strictly monitoring compliance, the "Supervisory Review Process" focuses on the insurers' risk profiles and the effectiveness of their governance and risk management systems.
- Harmonization of supervisory regimes will help to deepen EU market integration.
- EU insurers' international competitiveness has improved.
The three pillars of the Solvency II framework are as follows:
- Pillar 1 establishes quantitative standards, such as valuing assets and liabilities, calculating capital requirements, and identifying qualified proprietary funds to meet those needs.
- Pillar 2 lays forth the standards for risk management and internal governance and the supervisory procedure with responsible authorities.
- Pillar 3 is transparency, reporting to supervisory agencies, and public disclosure addressed under Pillar 3, which improves market discipline and comparability, resulting in more competition.
We assist customers with regulatory challenges such as Solvency II, financial reporting, corporate restructuring, product development, risk management, and strategic concerns at Corporate Biz Solutions by providing effective solutions based on the most up-to-date methodologies and technologies.