Insurance companies across the EU have a set of rules from the EC to protect policy holding citizens and that they can survive a financial crisis. Solvency 2 rules are a standard framework for insurance companies offering products like; reinsurance, life, and no life insurance. The laws target the insurance sector in being transparent, competitive and comparability to promote better consumer reliability.

Solvency 2 was amended by the EC to remove obstructive channels for investments on long-term projects and infrastructure. The insurance firms are unwilling in insuring large infrastructure project, and it’s a setback for in those investments as they require a high amount of capital.

The benefits of the new regulations are that long-term investments and trading facilities will enjoy lower charges in capital. Qualifiers of infrastructure investments will benefit from a lower risk calibration.