Solvency II: Pillar II Risk Management

Factsheet
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Pillar 2 of Solvency II sets out the qualitative requirements that insurers must meet at both individual and group level.

Published: 23 July 2012

General information

Aiming to safeguard adequate risk management and governance, the Pillar 2 provisions are related mainly to the system of governance, including the own risk and solvency assessment (ORSA). The requirements are closely aligned with the provisions of the Financial Supervision Act (Wft) governing sound and ethical operational management. They cover insurers’ organisations and their operational management in general, the expertise and trustworthiness of their directors and key officers, their risk management, internal control, key functions and outsourcing. ORSA forms part of the risk management system and focusses on insurers’ own assessment of the risks they run and their associated capital needs.

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