The response to the financial crisis is producing a continual stream of proposals to monitor. Solvency II does not sound as if it has a real estate angle. However, once its capital requirements are read, it clearly does. Nabarro looks into the impact of Solvency II.

Solvency II will radically change the supervision of insurers and reinsurers across Europe. Under Solvency II, existing insurance directives will be amended and recast into the new regime which introduces a consistent, risk-based, regime to better reflect modern solvency and reporting requirements.