Insurance Europe has responded to EIOPA’s consultation on the assessment of the prudential treatment under Solvency II of adaptation measures, welcoming EIOPA’s work to better reflect adaptation measures in Solvency II and supports further exploration of how these measures could be considered in the regular NatCat SCR reassessment process.
The association says this could improve the risk sensitivity of the standard formula while keeping the framework practical and proportionate for insurers. It also notes that using the existing reassessment framework could allow adaptation measures to be captured through updated catastrophe models and exposure data, without introducing disproportionate complexity or operational burden, while an expanded scope of application for USPs, as well as internal and partial internal models, could also help reflect specific risk profiles where appropriate.
Insurance Europe’s full response to the consultation can be found here.