Under Solvency II insurers will be required to hold capital against market, credit and operational risk. These are all risks which are currently not covered by the EU regime even though experience has shown that all these risk types can pose a material threat to insurers' solvency. Under 'Solvency II', new rules will for the first time compel insurers specifically to focus on and devote significant resources to the identification, measurement and proactive management of risks.