In view of tomorrow’s FSC meeting, please find attached the EC presentation on the Solvency II review.
Please note that the presentation states that EC is considering a single legislative package with following elements (to be published on 7 September):
- Legislative proposal for amendments to Solvency II Directive (2009/138/EC)
- Legislative proposal for an Insurance Recovery and Resolution Directive
- A Communication setting out the Commission’s intentions as regards the upcoming amendments to the Solvency II delegated acts (i.e. Delegated Regulation (EU) 2015/35) and the issue of IGS minimum harmonisation
In terms of the EC objectives of the reviews, the presentation includes the following:
- Better incentivise insurers to provide long-term financing to businesses and the green transition;
- Improve the balance between risk-sensitivity and the mitigation of excessive short-term volatility in insurers’ solvency position;
- Ensure more effective application of the principle of proportionality and reduce the burden for smaller insurers;
- Enhance quality, consistency and coordination of insurance supervision across the EU, including for situations where an insurer is failing or likely to fail (through an adequate recovery and resolution framework);
- Address the potential build-up of systemic risk in the insurance sector;
- Maintain the overall level of capital requirements for the insurance sector stable;
The secretariat would like to draw members’ attention to the last EC objective “Maintain the overall level of capital requirements for the insurance sector stable”. Members are encouraged to reiterate in any engagement ahead of the meeting that the objective should be to “not increase” rather than “maintain” the overall level of capital requirements. And that a decrease may be appropriate and necessary in order to achieve the first objective to “better incentivise insurers to provide long-term financing to businesses and the green transition”.
Insurance Europe