Solvency II: Reviewing Bermuda’s Regulatory Framework

Solvency II, the European initiative to overhaul the capital adequacy regime of the European insurance industry and create an agreed set of capital and risk management requirements, is scheduled to come into effect on 1 January 2016.

Solvency II will introduce a new regulatory and supervisory framework for Europe's insurance industry. This framework is divided into three pillars:

• Quantitative Requirements (Capital Requirements);
• Governance & Supervision; and
• Disclosure & Transparency.

The Solvency II Directive 2009/138/EC adopted on 25 November 2009 (Solvency II Directive), as amended by the Omnibus II Directive adopted on 11 March 2014 (Omnibus II Directive and together with the Solvency II Directive, Directive) is applicable to the European Union's insurance industry.