The Solvency II directive is often called "The Risk and Compliance Managers' Full Employment Act".

It is not difficult to understand why.

Insurance and reinsurance firms compete with regulatory agencies to hire hundreds of qualified professionals.

Solvency II requires four functions to be established as part of an undertaking’s system of governance.

These functions are:

• Risk management

• Compliance

• Internal audit

• Actuarial

Insurers need to demonstrate that they have sufficient in-house expertise or access to such expertise.

In order to safeguard the interests of policyholders and beneficiaries, insurance companies must be managed soundly and prudently.

In this respect it is essential that individuals in key positions do not pose a risk to the interests of the insurance company or its shareholders, e.g. through conflict of interests, inadequate knowledge of the business of insurance or through criminal activity.

Minimum standards are therefore set concerning the fitness and propriety of corporate officers who occupy key management positions.

Insurers need to demonstrate that these persons are adequately qualified and proper to do their jobs.

This is the reason insurers and reinsurers compete to hire qualified professionals, and Solvency ii is often called "The Risk and Compliance Managers' Full Employment Act"

Insurers and reinsurers headquartered outside the EU ('third-country insurers') are also affected.

Solvency ii includes specific rules for branches of direct insurers headquartered outside the EU which are similar to those applied to branches of insurers headquartered within the EU.

Many non-EU countries try hard to become Solvency ii Equivalent.

Equivalence assessments aim to ensure that the third country regulatory and supervisory regimes provide a similar level of policyholder/beneficiary protection as the one provided under the Solvency II Directive.

In case of a positive equivalence determination Member States are required to treat reinsurance contracts concluded with undertakings having their head office in the third country whose regime has been deemed equivalent, in the same manner as reinsurance contracts concluded with an undertaking which is authorised under the Solvency II Directive.

In case of a positive equivalence determination Member States shall not require the localisation within the Community of assets held to cover the technical provisions covering risks situated in the Community, nor assets representing reinsurance recoverables.

This is the reason Solvency ii is often called "The Risk and Compliance Managers' Full Employment Act" even for firms headquartered outside the EU.

Solvency II is a difficult, complex project.

We have a lot of things to do. We have to learn, to know each other, to help each other. We have to be fit and proper at all times.

Become a Certified Solvency ii Professional (CSiiP) and provide independent evidence that you understand the Solvency II framework.

This certificate can play an important role in the efforts to satisfy the fit and proper requirements of the directive.

Membership in the Solvency ii Association indicates that you are someone who cares, learns, and belongs to a global community of risk and compliance management professionals.

At every stage of your education, training and career, our association provides networking, training, certification, information and services you can use.

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