Calls for more proportionate Solvency II regime grow

The concept of proportionality is fundamental to Solvency II. Yet smaller insurers fear that the compliance burden they face will be too onerous. Thomas Whittaker examines whether the proportionality principle is really being applied

While fundamental to the legislative process within the European Union (EU), the principle of proportionality frequently remains elusive in practice. This has become increasingly apparent in the application of Solvency II.

With small- and medium-sized insurers and niche providers already apprehensive about the demands that the new regulatory requirements could place upon their limited resources an application of the principle could provide the breathing space needed. But the shift from principle