The European Union’s Solvency II directive proposal signals progress in insurance supervision

The International Association of Insurance Supervisors (IAIS) welcomes the developments in prudential standard-setting as reflected in the Solvency II directive proposal launched in the European Parliament in Strasbourg. IAIS Members, including its EU Members, are interested in how the new European framework will change the organisation of the prudential supervision for insurance companies. The IAIS paves the way towards more efficient and effective supervision, including the development of global solvency standards and guidance based on the coherent risk-based methodology presented in the IAIS Common structure for the assessment of insurer solvency 1. The shaping of Solvency II is an important building block in this direction.

“The IAIS expects that the new supervisory scheme will provide useful input to IAIS solvency initiatives as it will be applied by a large number of insurance supervisors within the European Union. It will inspire supervisors to rethink the way in which transnational supervision is organised“, Michel Flamée, Chair of the IAIS Executive Committee said. “This in turn will provide input to developing the IAIS solvency framework that promotes global financial stability as a prerequisite for insurance companies to be able to fulfill their useful role in society.”

The IAIS is interested in examining the way in which Solvency II fosters the measures necessary for addressing complex financial structures and groups. Of special interest are those measures that take into account the importance of adequate supervision of small and medium-sized insurance companies.

(This is the press release of IAIS)

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