Do Regulatory Projects Bring High Degree of Financial, Namely Insurance Market Stability?

The article analyses reasons for state regulation, and deals with present regulatory projects aimed at ensuring increased stability of financial, or more precisely, insurance markets, especially with respect to securing an adequate level of consumer protection and lowering information asymmetry. In more detail, the authors pay attention to the fundamentals of the Solvency II regulatory requirements for insurance firms that operate in the European Union and highlight some unanswered questions of practical implementation and limits of this framework. Moreover, they deal with other regulatory issues and terms (the use of "unknown unknowns" etc.).