Solvency 2
December 18th, 2011
Solvency 2 is a set of regulations and practices that have come about and are designed to assist the insurance industry in the upcoming years. solvency 2 and is primarily focused upon risk management. The fact is that many insurance companies are taking on more risk than they should be, in a lot of their dealings, and it is up to the insurance industry to come together to figure out just how to combat these issues. While solvency 2 was a great set of ideals that came about, there were almost too many questions that went unanswered, especially in terms of risk management. In certain cases the insurance companies were holding majority risk without spreading it around properly. Once solvency 2 is properly understood and implemented one can expect to see insurance companies branching out in terms of their risk practices. This way, when things go wrong, it will not all fall on the insurance company.
Entry Filed under: Insurance