Solvency II raises barriers for US reinsurers to underwrite risk in Europe

30-09-2016

Christian Wuestner

Solvency II raises barriers for US reinsurers to underwrite risk in Europe

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The advent of Solvency II led many European countries to tweak their reinsurance laws—in a way that will hinder US reinsurers wishing to write business in those countries. Intelligent Insurer reports.

Some US reinsurers could be in for a nasty surprise in the upcoming renewals as they discover unexpected barriers that could prevent them writing business in Europe because of rule changes that have been introduced by European countries in conjunction with the implementation of Solvency II.

The situation could lead to a migration of business to Solvency II-equivalent jurisdictions and, potentially, retaliation measures, according to some commentators.

Solvency II is the legislative programme implemented by EU member states this year. It has introduced a new, harmonised, EU-wide insurance regulatory regime, replacing 14 EU insurance directives.


Solvency II, North America, Europe, Brad Kading, James Smith, Barney Wanstall

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