Insurance Europe welcomes the launch of the European Commission’s consultation on the Level 2 technical measures of the Solvency II review. It is an opportunity to address excessive conservatism and volatility in the prudential framework, unlocking billions in capital to contribute to the EU's goals on competitiveness, sustainability and resilience.
Insurers are well positioned to support Europe’s future as long-term investors in infrastructure, the green and digital transitions and economic security. The sector’s ability to contribute to the EU’s growth objectives depends on the final Solvency II rules striking the right balance.
Commenting during the launch of the consultation, Angus Scorgie, Head of prudential regulation & international affairs at Insurance Europe, said, “The Solvency II review is a test of the EU’s growth and competitiveness ambitions. European insurers want to contribute to achieving them, but compared to countries such as the US and Japan, they are required to hold significantly higher capital buffers. Solvency II calibrated adequately could unleash billions more into Europe’s economy and maintain very high levels of policyholder protection”
It is also important to reflect the ambition of the political agreement reached by the European Parliament and Council last year. This includes not only capital reforms, but also efforts to streamline administrative processes and reporting requirements for all insurers.
Insurance Europe will submit a response to the consultation for the European industry.