Insurance Europe’s president, Sergio Balbinot, has warned that the details of the EU’s new Solvency II regulatory regime must be drafted correctly to ensure that the legislation works as intended and does not have negative consequences for the insurance industry and its customers.
On 11 March 2014 the European Parliament approved the Omnibus II Directive, which updates the Solvency II Directive of 2009. This formal adoption by the Parliament of the political agreement that was reached last November is another important step towards the introduction of Solvency II. However, the Delegated Acts that are currently being drafted to put the detail on to the Solvency II Directive deviate from the intentions of the legislators in several respects, such as long-term guarantees and third-country equivalence.
“If not corrected, the Delegated Acts would seriously limit insurers’ ability to provide the long-term investment and stability Europe’s economies need. They would have a major impact on the availability and price of insurance products, and would harm the ability of European insurers to compete internationally,” said Balbinot.