The EU has introduced new regulations called Solvency II to improve how insurance companies manage risks. These rules give insurers more freedom in their operations as long as they don't put policyholders at risk. The regulations focus on both quantitative and qualitative requirements, with an emphasis on principles rather than strict rules. The research shows that while quantitative requirements are important, qualitative aspects like risk management and investments are often overlooked. Overall, Solvency II aims to enhance the insurance industry by balancing freedom with responsibility to protect both insurers and policyholders.