The new framework – like the current rules – applies to almost all EU insurers and reinsurers. Only the smallest ones - such as those with gross written premium income of less than €5M annually - will not be subject to these new rules, although they can choose to 'opt in' if they so wish.

Furthermore, Solvency II is neutral when it comes to the legal form of the insurer; what matters is the nature, scale and complexity of the insurance business that it is running. However, Solvency II allows "supplementary members' calls" to be recognised as Tier 2 capital under certain conditions, thereby recognising the particular nature of the mutual sector.