Solvency II Regime

The Solvency II Directive was transposed into Irish Law as the European Union (Insurance and Reinsurance) Regulations 2015 (S.I. 485 of 2015) and the legislation entered into force on 1 January 2016.

The Solvency II framework sets out strengthened requirements around capital, governance and risk management in all EU authorised (re)insurance undertakings. Solvency II also introduces increased regulatory reporting requirements and public disclosure requirements. The new requirements are intended to reduce the likelihood of an insurer failing and should also provide policyholders with increased protection.

The new framework applies to almost all EU insurers and reinsurers. However, there are a number of smaller (re)insurance companies and (re)insurance companies in run-off that are not subject to these new rules. Further information on the alternative regulatory regime for such companies is available in the Non-Solvency II section.