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...

The core business of (re)insurance undertakings is to pool funds from policyholders and channel them to financial markets. In this context, the assessment of the financial condition and the overall solvency of these undertakings is directly associated with the level of assets held to fulfil...