Undertakings in difficulty, in the context of Solvency II, refers to insurers that are either failing or likely to fail to meet their solvency capital requirement (SCR) or their minimum capital requirement (MCR) (together, the capital requirements). For a more in-depth review of the capital requirements that apply to (re)insurers, please see “The Standard Formula: A Guide to Solvency II – Chapter 8: Capital Requirements.”
This chapter explores the legislative and regulatory framework that applies to (re)insurers facing difficulty complying with their capital requirements, including the consequences of noncompliance, and what enforcement and punitive powers regulatory authorities have to deal with actual or threatened noncompliance.
Please see full publication below for more information.
