Insurance Europe urges EC to deliver on Solvency II deal

Insurance Europe has written a letter to the European Commission (EC) calling for the technical negotiations of the EU’s Solvency II review to stay aligned with the political agreement and EU goals on climate change, financing the green and digital transitions, the Capital Markets Union and increasing competitiveness.

The letter was sent to the EC’s Vice-President Dombrovski and Commissioner McGuinness, just before the EC’s Expert Group on Banking, Payments and Insurance hold the first set of technical talks on 15 May.

Insurance Europe warns that if the Level 2 technical negotiations veer away from the aims of that agreement, it will “undermine the industry’s ability to contribute” to the wider EU policy objectives.

The federation noted that it is concerned because these details will play a crucial role in determining the impact and benefits of the review.

“For example, the industry notes that there should be no backpedalling on the agreement reached between the EU Parliament and Council to limit the impact the impact of changes to the risk correction – a key element of the Volatility Adjustment which protects insurers against unnecessary volatility from financial markets,” Insurance Europe said.

The federation also called on the European Commission to ensure that it uses the negotiations to deliver on its promises to reduce the reporting burden by 25%, which is holding back innovation and investment.

Insurance Europe explained that it is “very important” to get this, and other key calibrations, such as those relating to the extrapolation of the risk-free interest rates and risk margin, right.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.