New EU guidelines: Insurance better equipped against crises!

New EU guidelines: Insurance better equipped against crises!

Laimgrubengasse 10, 1060 Wien, Österreich - The insurance landscape in the European Union is experiencing a dramatic change: On January 8, 2025, a comprehensive reform package was published, which massively expanded the existing supervisory frames. The new legal framework, which includes an updated Solvency II directive and the new Insurance Recovery and Resolution Directive (IRRD), comes into force within two years. These measures are intended to strengthen the resistance of insurance companies and improve their ability to provide long -term capital for the economy. The reform was necessary to better prepare the industry for future challenges and to protect the policyholder: inside, as

A central element of the new regulations are the revised equity requirements that ensure that insurance companies have sufficient financial means to cushion potential risks. The coverage rate, which indicates how well insurers meet the regulatory capital requirements, shows that the German insurers are highly performing on this: On December 31, 2023, the life insurance sector achieved an impressive coverage rate of 479 percent, while the damage and accident insurers and the back insurers can show quotas of 280 and 291 percent. These key figures illustrate the stability and solidity of the German insurance market according to with the IRRD into the future

The IRRD also creates a clearly structured framework for crisis management and handling, which ensures that an orderly exit from the market is possible in the event of a financial collapse. Insurance companies are obliged to develop individual renovation plans that must be submitted to the supervisory authority. These measures aim to protect both the policyholder: inside and the general financial stability without having to fall back on tax funds. These reforms are not only crucial for the stability of the market, but also for ensuring a robust and reactionable financial system in the EU.