Reflecting the latest developments in prudential supervision, actuarial science and risk management, and to allow for updates in the future, the European Parliament and Council of the European Union yesterday adopted a “directive1,” setting new solvency rules—the "Solvency II" directive—for insurance companies.
The directive, the groups say, is aimed at strengthening the supervision of insurance companies and prudential regulation, because that existing solvency rules are well out of date.
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