EIOPA published a formal request from DG FISMA to EIOPA for an opinion on Solvency II and sustainability, in particular those aspects relating to climate change mitigation. EIOPA needs to deliver the opinion by 30 September 2019, including a cost-benefit analysis.
The EC invites EIOPA to prepare an opinion on a number of issues including:
- Criteria to identify sustainable investments that could benefit from a more favourable treatment
- Consideration of sustainability factors in (re)insurance underwriting practice
- The extent to which:
- calibration of the natural catastrophe risk module of the standard formula captures climate related developments.
- internal models design and calibration account for sustainability factors.
- cash flow projections for the best estimate capture sustainability and climate related developments.