What is Solvency II?

Solvency II is a project started within the European Union for insurance companies to operate within the scope of their respective areas of responsibility with an appropriate level of viability (solvency). The main goal is to improve the control and measurement of the market, operational, credit and liquidity risks insurance institutions are exposed to.

It is structured on three pillars or principles:

- Pillar I: Measurement of assets, liabilities and capital.

- Pillar II: Supervisory Process.

- Pillar III: Transparency Requirements.