Solvency II is the new European Union regime that regulates the solvency requirements for EU insurers and reinsurers. Solvency II aims to reduce the risk that an insurer would be unable to meet claims, to provide early warning to supervisors so that they can intervene promptly if capital falls below the required level, and to promote confidence in the financial stability of the insurance sector.

This book provides an overview of the new regulatory regime and how it will affect insurers and other market participants, including policyholders. The book's author, who was closely involved in the making of Solvency II, offers all the necessary insights to better understand this new regulation. The book is written for a wide audience, from the non-expert who wants to gain more insight in the complex world of insurance, to the specialist who will find the book a helpful reference work. It will be useful for risk managers, actuaries, accountants, lawyers, students, and all those interested in insurance and in the operation of the insurance market.