However, Ireland can fain forget that in the matter of governance of banks or insurers, as in other matters, the issuance of regulations, however well meaning, is no guarantee that their spirit will be observed or that their aim will be achieved. Solvency II can be commended for bringing out governance requirements.
It will be up to the insurance firms to live up to them. In this governance framework, Solvency II requires insurance undertakings to conduct their own risk and solvency assessment. Such a requirement will be familiar to Irish insurers, through the Central Bank of Ireland insistence that boards define their risk appetite and formulate an explicit statement around it.