 Risk and Solvency Regulation in EuropeRene Doff ()
A chapter in Handbook of Insurance, 2025, pp 483-500 from Springer Abstract: Abstract The European Solvency II framework has set an example for insurance regulations across the globe. This chapter looks into Solvency II and investigates the outcome of the regulation since its implementation in Europe in 2016. Our analysis of Solvency II uses the building blocks of the 2017 Committee of Sponsoring Organisations of the Treadway Commission (COSO) enterprise risk management (ERM) framework. One benefit of Solvency II is a more consistent methodology to measure insurer solvency. Our analysis shows that insurers’ solvency ratios in Europe have declined since 2016 due to a better estimation of the true risks and a better valuation of the capital position. We also show that internal model outcomes for life insurers are better (higher) than their standard-model peers. For non-life, however, this effect is inverse. We conclude that scenarios would be a good methodology to explore climate change risks and that this is also the intention for incorporation in Solvency II going forward. Keywords: Risk measurement; Risk regulation; Solvency regulation; Solvency II; Risk mitigation; G01; G18; G22 (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-69674-9_17 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-69674-9_17 Access Statistics for this chapter More chapters in Springer Books from Springer |
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