The solvency margin system

23-07-2001

The establishment of solvency margins – a supplementary reserve, over and above the amount strictly necessary to meet underwriting liabilities – is one of the cornerstones of the regulatory system governing European insurance undertakings. This Briefing outlines current EU legislation in the fields of both life and non-life insurance, and also recent Commission proposals for amendment.

The establishment of solvency margins – a supplementary reserve, over and above the amount strictly necessary to meet underwriting liabilities – is one of the cornerstones of the regulatory system governing European insurance undertakings. This Briefing outlines current EU legislation in the fields of both life and non-life insurance, and also recent Commission proposals for amendment.