Solvency II is the EU’s risk‑based prudential regime for insurers, built on three pillars covering quantitative capital requirements, governance and risk management, and disclosure and reporting. It incentivises sophisticated internal models, ORSA processes, and strong enterprise risk management to ensure that capital is commensurate with the underlying risk profile. For insurance executives, Solvency II shapes product strategy, asset allocation, reinsurance purchasing, and even M&A decisions, while driving demands for high‑quality data and transparent risk reporting.