For the purpose of early detection of emerging risks we have had in place for many years an efficient process that spans divisions and lines of business and we have ensured its linkage to risk management. Operational implementation is handled by an expert working group assembled specially for this task. Along with the identification and evaluation of emerging risks, these specialists also focus on the analysis of global long-term trends. The working group reports quarterly on its findings to the "Emerging Risk Committee", which is led by a member of our Executive Board.
Key elements in our business opportunity management include the various market-specific innovations in the Life & Health and Property & Casualty reinsurance business groups. Innovative ideas from our staff that can be successfully translated into new business models are rewarded – including in financial terms. The "Innovation Management" department has been set up especially for this purpose as part of the area "Regulatory Affairs & Innovation". This service unit deals systematically with ideas and business opportunities and it concentrates its activities on generating additional premium volume with profit potential. In this context, among other things, ideas for new business opportunities are evaluated and refined and optimal framework conditions for acting on them are put in place.
A stable financial market is of vital importance both for global sustainable development and for us as a listed company. Particularly noteworthy in the period under review was the agreement reached in November 2013 on the implementation of Solvency II effective 1 January 2016. The Solvency II Directive has the principal goals of strengthening protection for insureds, creating consistent competitive standards in the insurance sector within the single European market and hence safeguarding largely uniform supervisory practice in Europe. We were quick to begin preparing for the requirements of Solvency II, and we have long practised a risk-based, value-based management approach of the type called for under the supervisory regime of Solvency II. Our internal capitalisation targets comfortably exceed the regulatory requirements. Effective 1 January 2016 the new supervisory regime Solvency II entered into force. We fulfilled the far-reaching requirements with respect to capital adequacy, governance and reporting in a timely manner. Our internal capital model was approved by the Federal Financial Supervisory Authority (BaFin) in August 2015. We are also able to leverage the know-how that we gained in the development of this capital model for the design of individual reinsurance solutions for primary insurers.