Solvency II Regulation
What is Solvency II?
Solvency II (also known as Solvency 2 or Solvency Dos) is a European regulatory framework designed to ensure the financial stability of insurance companies and protect policyholders.
This regulation requires insurers to accurately measure and manage their risks, maintain adequate capital levels, and comply with strict supervisory and transparency obligations.
Why is Solvency II compliance important?
The Solvency II framework adopts a risk-based approach that strengthens the solvency, resilience, and financial management of insurers.
It enhances market confidence, fosters competitiveness, and ensures that companies can withstand adverse scenarios without compromising their obligations to policyholders.
Solvency II also provides comparability with other regulations like Basel III and NIS2, tailored specifically for the insurance sector.
Pillars of Solvency II
The regulatory framework is based on three fundamental pillars:
- Pillar I – Quantitative Requirements: Calculation of the Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR)
- Pillar II – Qualitative Supervision: Governance, risk management, and internal controls
- Pillar III – Disclosure Requirements: Transparency and communication with supervisors and the market
This comprehensive approach assesses not only financial solvency but also corporate governance robustness and operational transparency.
- Insurance and reinsurance companies established in the EU
- Insurance groups with complex structures
- Entities offering long-term financial products
- Insurers with capital requirements, technical provisions, and solvency reserves
- Sanctions from European or national regulators (e.g., DGSFP in Spain)
- Challenges operating in regulated markets or issuing financial products
- Loss of reputation and trust from investors and customers
- Risks of capital insufficiency and inadequate coverage in extreme events
Achieve Solvency II compliance with Bsecure
At Bsecure, we assist insurers in meeting Solvency II requirements, focusing on operational risk and technology controls through automated solutions like DataPASS.
DataPASS: risk management and compliance for Solvency II
DataPASS supports implementation of controls across Solvency II’s three pillars by:
More information- Identifying and assessing operational risks in critical systems
- Generating supervisory reports aligned with Pillar III
- Supporting governance and internal audit processes
- Monitoring compliance in legacy environments such as z/OS
DataPASS Hub:
Mainframe security and auditing for trusted suppliers of large corporations
Designed to enable auditing firms, cybersecurity consultancies, and MSSPs to expand their service portfolio as a trusted provider for large client organizations.
- Control dashboards by subsidiary or business unit
- Compliance monitoring for policies and regulations
- Audit-ready traceable evidence recording
Solvency II training for technical and compliance teams
We offer tailored training to help your team understand and apply Solvency II:
- Workshops on Solvency II pillars
- Specialized training on operational and technological risk
- Simulated capital assessment and reporting exercises
