A proportionate response – captives argue against Solvency II

The ability of captive insurers to serve a niche has seen them prized by insurers and non-insurers alike. But their unique structures and often small size leave them exposed to onerous demands under the Solvency II directive. Theodora Tsentas reports

Trawlermen and insurance risk managers rarely find themselves facing the same problems during the working day, but away from dealing with raging seas or complex mathematical models both groups have complained about proportionality. Or to be exact: its absence.

Proportionality (see below) is a keystone of the European project. Put simply, European Union (EU) legislation applies unless the impact on an entity would be in excess of the legislation's intentions. For open beam trawler men, whose