Capital management
Solvency II
Solvency II represents new EU legislation which totally redefines prudential supervision of EU insurers. It aims to establish a new economic risk sensitive approach to capital and solvency calculation and a new harmonised EU supervisory regime which places importance on effective internal governance and risk management practices, which Aviva supports as offering a blueprint for industry best practice. To that end, we continue to be an active participant in the key European industry working groups who provide the voice of industry in ongoing negotiations in Brussels. The first stage of the Solvency II project reached a conclusion in May 2009, with the “Level 1 Framework Directive” formally adopted by the European Parliament. Full implementation of Solvency II will be required in October 2012.
