On 26 March 2009, the European Union reached an informal agreement on the broad framework principles of the Solvency II Directive, and decided to pass it to both the EU Parliament members and the EU Council for voting in April and May respectively.
Raj Singh, Swiss Res Chief Risk Officer stated: Against the background of the current financial crisis, the expected passing of the new Solvency II framework directive by the European Parliament and the Council will send a strong signal that an economic and risk-based view on insurance business is of utmost importance.
Singh added: Solvency II is the appropriate answer to the financial crisis, and one which the insurance industry and insurance regulators have long asked for, because it provides incentives for sound risk and capital management and provides policyholders with better protection. Importantly, this informal agreement on Solvency II comes at the right time for the meeting of the G-20 countries in London in April. It will clearly strengthen the position of the European insurance industry.