Introduction to Solvency Ii of (Re)Insurance Undertakings

Directive 2009/138/EC, best known as Solvency II Directive, is more than a directive that simply regulates the supervision and the taking-up and pursuit of (re)insurance business in the EU. First and foremost, it introduces a new perspective on the role of (re)insurance undertakings towards risk intermediation, as an evolutionary step away from financial intermediation and their traditional function of risk warehousing. The present paper discusses the modalities of this new perspective and analyses the consequences for the management of insurance products. By doing this, it also introduces the reader to the EU dimension of the Solvency II legal framework, it establishes the connection with the Greek legislation giving effect to it in Greece, i.e. Law 4364/2016, it outlines its main provisions and it explains the rationale behind them