A Closer Look at the Evolving Process Transforming the Global Insurance Industry

"… Solvency II will cause a transformational shift in the way the insurance industry operates in Europe, it will also have wide-ranging implications on a global scale," according to a perceptive but dated Solvency II report issued by KMPG. The report is a good primer for those who have not been following the development of Solvency II. For US-based captives, there is a helpful comparison chart of the US risk-based capital and the European Union Models. The KMPG report authors attribute Solvency II as partially driving National Association of Insurance Commissioners Solvency Modernization Initiative. Subsequent to the report, the Europe-wide Solvency II risk-based capital rules have been delayed and will not come into force until January 2016.