EIOPA published a request from DG FISMA to EIOPA to review the methodology for the activation of the “country component” of the volatility adjustment under Solvency II.
https://eiopa.europa.eu/Publications/Requests for advice/signed_letter_08_02_19.pdf
In the document, the EC notes that the European Parliament ECON committee and industry stakeholders have highlighted that the current methodology does not work as intended. The Commission further notes that the proposals brought to its attention would require changes to the Solvency II Directive.
While changes to the Solvency II Directive in this respect can be considered as part of the 2020 review, with this request, the EC invites EIOPA to immediately start exploring if there are other possibilities to improve the functioning and efficiency of the country component of the volatility adjustment that would be in line with the current legal framework. Any technical proposal would need to be accompanied by an impact assessment.