Changes taking place on the global insurance market, changes in methods of risk management, accounting standards, globalisation processes, the development of financial instruments, and changes taking place in EU legislation have meant that the regulations which have been functioning for years in EU member states on the solvency of insurance companies are no longer meet the new challenges faced by supervision authorities with regard to protecting the interests of insured entities and persons. It has become necessary, therefore, to introduce reforms of the system in force in order to create a solvency system which takes account of the types of risk to which insurance companies and reinsurance companies are exposed to in connection with the activities they conduct. The introduction of those changes has been prepared as Solvency II. Not only it has a significant effect on the insurance market, it also involved a significant modification of the methods and standards of exercising supervision over that market.
Questions concerning the Solvency II: