[Excerpt] Solvency II and ORCA (Own Risk Solvency Assessment) are European Union insurance regulatory initiatives designed to standardize and strengthen EU nation based insurance companies (including captive insurance companies) to protect businesses and the public. These initiatives have moved quickly in response to the current global economic crisis. The massive US bailout of AIG in 2007, one of the world’s largest insurance concerns, brought insurance company capital reserves and operating practices under the spotlight across the globe. Large insurance companies and larger captives should find compliance relatively easy. Smaller insurers including smaller captives impacted by these new rules need to plan for the implementation impact now.
Solvency II will be implemented by the end of 2012 and its impact on captive owners is not yet clear. Click here to visit our "Hot Topics Articles" to read the full story by our research staff explaining the impact of Solvency II and ORCA and related global trends on captive insurance companies.