The European legislation on prudential rules for insurance companies (Solvency II) is set for a final decision, which will be of fundamental importance as it will dictate capital regulation for insurers. Jon Danielsson, Ralph S.J. Koijen, Roger Laeven, and Enrico Perotti, argue that the final text should respect three fundamental principles to ensure solvency. Read their opinion piece on VoxEU and letter in Financial Times.
