As (re)insurers attempt to balance the search for yield with prudent risk management, regulators are reviewing the application of the Prudent Person Principle under the European Union’s (EU’s) Solvency II regime, to ensure it remains appropriate in light of market trends in investment strategies. In this paper, we summarise the key developments that insurers need to be aware of to ensure their investment and risk management strategies remain up to the challenge. We discuss:

• The Prudent Person Principle under EU Solvency II
• Solvency II Review
• Solvency United Kingdom
• Bermuda regulatory framework
• Bermuda Monetary Authority consultation
• Framework in the United States