Capital Requirements, Disclosure, and Supervision in the European Insurance Industry

European insurance companies are facing an array of new challenges and innovations. Solvency II is a new framework that poses capital requirement, disclosure and supervision issues, and is one of the most important regulatory innovations in the field of insurance in the last 20 years. The wide range of innovations occurring and the number of operators involved through impact studies and assessments have created an atmosphere of great expectation around Solvency II entering into force. The adoption of a risk-based approach appears to be the most important innovation of the new regulatory framework, determining important issues related to capital requirements and their supervision as well as their disclosure to the market