A broad range of activities may be outsourced under the impending Solvency II. But responsibility will always remain with the insurer, say John Larkin and Eoin Caulfield. The principal framework around Solvency II was approved and formally ratified at European level in May 2009. Solvency II, described as the ‘Basel II’ for reinsurers, aims to protect the interests of policyholders and policy beneficiaries by ensuring the stability of companies in the industry.