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Regulation & Compliance

Solvency II

Also called: Solvency 2, insurance capital regime

Solvency II is the EU capital regime for insurers, requiring capital sized to survive a one-in-200-year loss over a year, with market-consistent valuation of assets and liabilities. It's the insurance analogue of Basel for banks. Its practical effect on markets is large: capital charges shape what insurers can hold, which influences demand for long-dated bonds and infrastructure debt.

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