the European Commission adopted the Delegated Regulation amending Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
http://ec.europa.eu/finance/docs/level-2-measures/solvency2-delegated-regulation-2019-1900_en.pdf
The EC will now submit the delegated act to the European Parliament and Council for scrutiny.
The secretariat of Insurance Europe notes the following key differences compared with the draft proposal consulted on in November:
- Long-term equity (Article 171a): the 12-year duration and ring-fencing conditions have been revised (recognising, to some extent, feedback by the industry).
- Application date: is deferred to 1 January 2020 for LAC DT (as requested by the industry). For most other elements, the application date remains 20 days after publication in the Official Journal.
- Volatility adjustment: Recital 7 requires that the country component is reviewed as part of the 2020 review.
- Unrated debt: requirement for co-investment by banks is 20% (instead of 50%) (see Art 176c).
The delegated act will enter into force if no objection has been expressed by the European Parliament or Council. They have 3 months to review, with the possibility to request an extension of additional 3 months.