Solvency II came into force on 1 January 2016 following a long
period of preparation. Its phasing in stage is also drawing to an
end with the publication of EIOPA's Implementing Technical
Standards and guidelines. This is indeed the dawn of the Solvency
II era.
Unfolding scenario
Solvency II ushers in a new way of looking at risk focused on
bringing the objectives of both regulators and operators into close
alignment. This is a regulatory regime that is built on dialogue
with market participants and that seeks to better understand
business models, strategies and underlying risks in order to ensure
stability, mitigate and pre-empt risk wherever possible. In the
ORSA, insurers have a structured framework on which to develop
strong risk management capabilities in the face of challenging
economic and market conditions. It provides the background against
which the industry will need to develop a strong risk culture that
informs strategic business choices and the setting
