Solvency II Group Supervision: An Introduction to the Legal and Economic Background

Abstract

This chapter provides a structured introduction to Solvency II group supervision by combining legal and economic perspectives. It begins by outlining the rationale for group-specific oversight, highlighting prudential risks such as contagion, double gearing, and intra group transactions. The subsequent legal analysis follows the three pillar architecture of Solvency II, explaining the scope of application, quantitative capital requirements, governance and risk management obligations, and reporting duties at group level. Particular attention is paid to the supervisory architecture, including the role of the group supervisor and the functioning of colleges of supervisors. The chapter then turns to the economic significance of insurance groups, draw-ing on empirical data to demonstrate their market relevance and solvency strength. Throughout, key amendments introduced by the Solvency II Review are integrated, especially regarding the expanded scope of group supervision, strengthened governance requirements, and the introduction of macroprudential and sustainability-related elements. The chapter concludes with a critical assessment and an outlook.

Mehr zum Titel

Titel	Solvency II Group Supervision: An Introduction to the Legal and Economic Background
Medien	Solvency II: Present and Future, Oxford University Press, Oxford
Verlag	Oxford University Press
Herausgeber	Van Hulle, Karel; Gründl, Helmut; Kraft, Mirko
ISBN	9780198927617
Verfasser	Prof. Dr. Mirko Kraft, Lukas Böffel
Seiten	199-221
Veröffentlichungsdatum	16.07.2026
Projekttitel	Solvency
Zitation	Kraft, Mirko; Böffel, Lukas (2026): Solvency II Group Supervision: An Introduction to the Legal and Economic Background. Solvency II: Present and Future, Oxford University Press, Oxford, 199-221.