Insurance EuropeInsurance Europe
Solvency II

A new risk-based regime for Europe

Since 1 January 2016, Europe’s insurers have been governed by a set of rules called Solvency II. The rules aim to ensure that policyholders throughout the European Union enjoy the same level of protection, no matter where they buy insurance.  

Europe’s insurers played a significant role in the development of these new rules and welcomed their aims. However, insurers also raised concerns that certain elements within Solvency II would produce unintended consequences, which could ultimately harm both insurers and their policyholders.

To ensure there was the opportunity to address these concerns, policymakers mandated two reviews of the legislation: the 2018 review of Solvency II's implementing measures and the 2020 review of the Solvency II Directive.

Gérald Harlin Solvency IIAs part of the 2018 review, Insurance Europe worked with policymakers and supervisors to develop a series of improvements which should reduce the regulatory burden for insurers without impacting the level of policyholder protection.

However, insurers remained concerned about the treatment of long-term products and investments. Significant improvements to the legislation are vital if the insurance industry is to continue to play a stabilising role in the European economy and to support future economic growth.

While the 2018 review has raised the issue of the need for simplifications and technical corrections, the bigger scope of the 2020 review offers the opportunity to make ambitious improvements and Insurance Europe is committed to working with all stakeholders to ensure that the rules are adjusted so that Solvency II works as intended.

Related statistics
European insurers investment portfolio
Total insurers' investment portfolio, €bnGrowth rate, %

Hover over the bars for each data point, or click on a bar to see life or non-life premiums by country data.

Nominal €-values at current end-of-year exchange rates
Nominal %-growth at constant end-of-year exchange rates 
Figures are for Domestic Market (business written on home territory by domestic companies, including subsidiaries + 3rd country branches), unless stated otherwise 
Size of the sample (as % of total premiums): 99.81%

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Olav Jones
Olav Jones
Deputy director general/Director, economics & finance
Cristina Mihai
Cristina Mihai
Head of prudential regulation & international affairs