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Solvency II

What is Solvency II?
Solvency II is the proposed European regulatory system, which will apply to EU and EEA insurers and reinsurers. It will involve a radical overhaul of solvency and reporting requirements, risk management standards, and supervision processes. At the heart of the proposals is the introduction of a harmonised economic risk-based capital regime across all EU member states. The proposed framework will require (re)insurers to take account of all types of risk to which they are exposed and to manage those risks more effectively in order to improve consumer protection and deepen market integration.

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