Solvency II | KPMG | NL

Solvency II

Solvency II

Solvency II is the new, risk-based supervisory framework for the insurance sector that came into effect on 1 January 2016.


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The framework consists of the Solvency II Directive (2009/138/EC), its implementing regulation technical standards and Delegated Regulation. Solvency II is based on three interconnected pillars:

  • Pillar 1 focusing on quantifiable risks and related provisions and capital requirements;
  • Pillar 2 focusing on risk management and operational management of insurance companies;
  • Pillar 3 focusing on the requirements applying to the public disclosure of information and supervisory reporting.


Solvency II, in conjunction with the broader market dynamics, is likely to make insurers critically assess their strategy and capital position, product development and distribution reach. While Solvency II is a further step in improving the insurance sector's ability to absorb shocks arising from financial and economic stress, the framework is not yet completely comprehensive. Interpretation or treatment of certain components is not fully crystallized. Therefore, we consider the ongoing debate around tax (DTA and LAC-DT) an important one, which will have implications for the insurance industry. As the process unfolds, unforeseen challenges and opportunities would encourage progress and enable adjustments toward achieving EU's goals for the insurance industry.


Author: Jeroen van Wageningen, partner


Further information:
LAC DT – de virtuele opschroever van de SII-ratio?
Solvency II AUP: Altijd lastig, zo'n eerste dag
Hoe ver zijn verzekeraars met de implementatie van Solvency II?

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