Principles Governing Transitional Provisions

|Principles Governing Transitional Provisions

Principles Governing Transitional Provisions

The CRO Forum supports the principles of Solvency 2 and its focus on risk management of economic capital. Solvency 2 represents a step change in the prudential regulation of insurance that promotes the best practice standards of risk management advocated by the CRO Forum. The challenge of implementing a harmonised and risk-based economic approach across the EU should not be underestimated. It is important that the standards being discussed deliver the principles of Solvency 2 and do not delay implementation beyond 2012. The CRO Forum recognises that there needs to be a pragmatic approach moving towards Solvency 2 and it will potentially be necessary to have transitional provisions to ensure a smooth transition. This note sets out the CRO Forum views about the high level principles that should govern acceptable transitional arrangements in the context of the Solvency 2 implementing measures.

2017-05-10T20:05:29+00:00