UK implementation of Solvency II remuneration requirements

The EU Solvency II Directive (2009/138/EC) prescribes remuneration requirements – set out in Article 275 of European Commission Delegated Regulation 2015/35 – which will apply from January 1 2016. These pertain to the governance structure and risk management of (re)insurance businesses. They include requirements for the establishment and maintenance of remuneration policies and procedures to avoid conflicts of interest and promote sound and effective risk management, so as not to encourage excessive risk taking.