EU Council Gives Formal Nod To Insurance Overhaul

Law360, New York (May 5, 2009, 12:00 AM EDT) -- After months of intensive negotiations, the European Union’s Economic and Financial Affairs Council on Tuesday formally approved a system to modernize insurance regulation, increase competition in the industry and enhance policyholder protection throughout the EU.

Scheduled to take effect on Oct. 31, 2012, the Solvency II framework will require insurers and reinsurers to take account of all types of risk to which they are exposed and to manage those risks more effectively and with increased transparency.

Under the single directive, which will replace 14 existing directives,...
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