Solvency 2 is an upcoming EU regulation for insurance companies. While some senior executives have a good understanding of Solvency 2, the majority have limited or poor understanding currently. It will require insurance companies to improve their enterprise data management, including appointing data owners and stewards. The regulation emphasizes high quality asset and risk data across pillars related to market, credit, life and non-life risk. In response to Solvency 2, insurers are expected to more closely match assets and liabilities, focus on return on solvency capital, and use more derivatives for risk management. They will also likely shift to shorter-dated credit investments and maintain low equity allocations.