Insurance, Germany - Law and Practice

1. REGULATION

1.1 Regulation of Insurers and Reinsurers

European Level: Solvency II

On 1 January 2016, a major new prudential and supervisory regime called Solvency II came into force across the whole of the European Economic Area (EEA), consolidating and amending the previous life, non-life, reinsurance and insurance group directives as well as widely substituting previous national regulations. The aim of Solvency II is to create a single market for insurance in the EEA, thus providing a single set of key prudential requirements that apply consistently to insurance and reinsurance entities operating within the EEA, and enhance policyholder protection through establishing prudential requirements better matched to the true risks of the business.