The European Union undertook a massive task of revising the capital requirements for insurance and re-insurance businesses. The insurance industry is facing problems similar to those Wall Street had in 2008. They are under capitalized. In addition, the standards for underwriting vary greatly among EU countries. Another factor that that is key to this plan is to try to determine the standards for underwriting by each country. The initiative was begun in November 2011. The European Insurance and Occupational Pension Authority (EIOPA) designated that comments are due January 2012.

Britain is not part of the European Union but has undertaken its own program for solvency ii through the Financial Services Authority (FSA). FSA recently set January 1, 2013 for implementation for supervisors and January 1, 2014 for implementation by firms. The effects of this are likely to wide ranging and felt by all manner of companies in the UK in the years to come. QBE Insurance Group represents 25 insurance and re-insurers worldwide. QBE has given four companies the approval to go ahead with their solvency ii plans. This will mean that they will fully comply with the latest rules and regulations and be well positioned to take full advantage of them.