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New International Rules for Corporate Governance and the Roles of Management and Boards of Directors

  • Alexander R. Besher
  • Staffan Furusten
Chapter

Abstract

The aim of this chapter is to examine how different insurance companies have adopted and interpreted Sweden’s transposition of European Union (EU) directive Solvency II, launched in 2016, with regard to the directive’s corporate governance rules in their own organizations. Solvency II is aimed at protecting the policyholders, that is, insurance consumers as well as to stabilize the insurance market. The chapter concerns Solvency II’s section on corporate governance, that is, Articles 40–50 with special focus on Article 40. This Article sets out that each member state of the EU shall ensure that the administrative, management, or supervisory body of the insurance company (mutuals included) has the ultimate responsibility for the compliance with the laws, regulations, and administrative provisions adopted pursuant to the directive. However, Solvency II does not dictate how it should be transposed. Rather, each member state translates Article 40 in accordance to the state’s current corporate governance system. This means that there are contravening conceptions within the insurance industry on how the Article should be transposed and what consequences it will bring to the roles of management and boards and division of workload between these roles in mutual enterprises.

Keywords

Solvency II directive (Corporate) Governance Board of directors Managing director Mutual insurance companies Study Survey Questionnaire 

References

  1. Besher, Alexander R. 2018. Företagsstyrning – En associationsrättslig studie av styrelsens och VD:s funktion och ansvar i aktiebolag och försäkringsföretag. (Manuscript, Stockholm University).Google Scholar
  2. Directive 2009/138/EC. EC of the European Parliament and of the Council of 25 November 2009 on taking-up and pursuit of the business of insurance and reinsurance (Solvency II).Google Scholar
  3. Prop. 1975:103. Regeringens proposition med förslag till ny aktiebolagslag m.m.Google Scholar
  4. Prop. 2015/16:9. Genomförande av Solvens II-direktivet på försäkringsområdet.Google Scholar
  5. Rosser, Gervase. 2015. The Art of Solidarity in the Middle Ages. Guilds in England 1250–1550. Oxford: Oxford University Press.Google Scholar
  6. Swedish Companies Act (2005:551).Google Scholar
  7. The Swedish Insurance Business Act of 2010 (2010:2043).Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of LawStockholm UniversityStockholmSweden
  2. 2.ScoreStockholm UniversityStockholmSweden
  3. 3.Stockholm School of EconomicsStockholmSweden

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