The range of articles and documents attached to this page are intended to help societies prepare for the launch of Solvency II: whilst full compliance is required by 2012, it is likely that work will need to begin from 2009.
The scope of Solvency II includes:
- To reduce the risk that an insurer would be unable to meet claims;
- To reduce the losses suffered by policyholders in the event that a firm is unable to meet all claims fully;
- To provide supervisors early warning so that they can intervene promptly if capital falls below the required level; and
- To promote confidence in the financial stability of the insurance sector
- Pillar 1 consists of the quantitative requirements (for example, the amount of capital an insurer should hold).
- Pillar 2 sets out requirements for the governance and risk management of insurers, as well as for the effective supervision of insurers.
- Pillar 3 focuses on disclosure and transparency requirements.
Solvency II, an introduction to QIS 4
These slides and article are produced by kind permission of OAC, an Associate member of AFS. In July 2008 OAC presented to the AFS Income Protection Committee, and the two resources gave an up-to-date perspective on how Sovency II is emerging and how it might impact friendly societies (posted July 2008).