What this means to you:
Smaller insurers might not be able to compete under the new regime but, because they have a book of business, would have value to an acquirer.
You're welcome, but don't thank me, thank Peter Vipond as quoted in the Times of London:
The new rules, which are designed to enable insurance companies to sharpen up, and limit, the amount of capital that they have to hold to cover their risks, should make it easier for insurers to get involved in cross-border mergers and acquisitions, Peter Vipond, the director of financial regulation of the ABI, said.
“In insurance, it is often difficult to extract value,” he said. “In principle, we would expect Solvency II to generate more M&A.”From Europa.eu
and the Times, link above.