Directive of the European Parliament and Council on reinsurance 2005/68/ES passed


Aiming at sound discharge of its role, reinsurance must be regulated in a way, which enables free movement of capital taking into account broad diversification of the business and territories where reinsurance is providing its service. In some EU Member States where historically first professional reinsurance companies have been established, this Directive should introduce substantial changes in the regulatory framework of supervision and capital of the reinsurance companies. On the other hand, it is likely that provision of the certain reserve level and solvency margin shall not cause significant adjustment of the reinsurance companies to the Directive, because those are reputable international reinsurers which reliability has been proven many times in the past. Future development ofthe legislation and standards of the international professional organizations, as well as particular practice issues ofthe companies and supervisory bodies, shall certainly bring to passing new rules and adjustment ofthis Directive to the new requirements.