The insurance industry currently experiences significant regulatory changes, called Solvency II. By implementing the new regulatory requirements, insurance compa-nies are facing various challenges. The objective of this master thesis is to explore and summarize the challenges that occur by implementing the Solvency II di-rective, especially regarding the governance functions. Moreover, one of the inter-esting aspects is the interaction between governance functions, which has been included in the empirical study. In order to obtain the information about current challenges of the insurance companies, it was conducted an interview with an ex-pert, which provided an overall view on this topic. Additionally, the costs which in-curred by implementing the Solvency II directive and organising the governance functions have also been explored.