How Solvency II and Good Governance Are Shaping the Future of Insurance Boards
The insurance sector is at a turning point. As new regulations and best practices reshape boardrooms, it’s clear that governance is no longer just a matter of compliance—it’s a crucial driver of resilience and performance. In a recent episode of “Academia de Guvernanță”, Alexandru Ciuncan, President and General Manager of UNSAR, and Adriana Lobdă, founding member of Envisia – Boards of Elite, explored how Solvency II and a culture of proactive oversight are rewriting the rules for insurance boards—and why it matters now more than ever. "Academia de Guvernanță" is a project developed by Envisia-Boards of Elite in partnership with Profit.ro.
Alexandru Ciuncan highlighted how Solvency II has transformed the insurance sector by introducing a risk-based approach that directly engages boards. Moving beyond the old Solvency I framework, Solvency II requires boards to anticipate risks, prepare their organizations for future challenges, and focus on three key pillars: capital adequacy, internal risk assessment, and comprehensive reporting. These changes have placed a much greater emphasis on transparency and proactive oversight.
“Boards are now responsible for analyzing and acting on complex reports that ensure transparency with clients, shareholders, and regulators,” Ciuncan explained. He emphasized that this shift isn’t just about ticking boxes; it’s about safeguarding the company’s long-term stability and ensuring trust among all stakeholders. It’s also about ensuring that the governance framework and internal control systems are robust enough to withstand evolving risks.
Adriana Lobdă added that one of the key challenges for board members in this environment is understanding the full scope of these regulatory frameworks. “We used to think it wasn’t the board member’s role to know every detail of the regulations, but now it’s clear that they must have a deep understanding of the entire governance philosophy and its added value,” she said. She also emphasized the need for board members to act as ambassadors for the company, effectively communicating with diverse communities—including those with varying levels of financial literacy.
Another important aspect highlighted by Lobdă is the professional reputation of board members, especially in the insurance sector, which carries higher perceived risks than other industries. Members must not only understand and manage these risks but also uphold their own professional integrity. “Regulatory frameworks are rigorous, requiring clear criteria for nomination, ongoing competencies, and even assessments of how board members work together,” Lobdă noted.
Ciuncan pointed out that climate change has become one of the most pressing risks for the insurance sector globally. “We’re seeing an increase in the frequency and severity of natural disasters, and boards must think ahead to understand how these risks will impact the company’s activities,” he said. In Romania, the conversation is also about bringing insurance closer to the people and adapting governance systems to ensure these risks are addressed proactively.
Ultimately, Adriana Lobdă concluded that corporate governance goes far beyond mere compliance—it’s about business performance, motivating people, earning public trust, and creating investor visibility. “With new regulations, board members must ensure not just that internal controls work, but also that they can publicly demonstrate this. That’s a huge responsibility and it underscores why continuous education is critical for modern boards,” she said.
Follow the entire discussion HERE.
As a leader in this field, Envisia – Boards of Elite is dedicated to helping boards navigate these challenges through cutting-edge education, mentoring, and international partnerships. By fostering strong governance practices and strategic thinking, Envisia empowers boards to drive long-term value for their companies and the communities they serve.
Academia de Guvernanță equips board members and C-suite professionals to meet the challenges of modern governance. Through world-class education and consulting, ENVISIA ensures leaders understand that reputation isn’t just image — it’s a critical form of capital that drives long-term success.
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