Insurance EuropeInsurance Europe
Position Paper
Solvency II review – Dos and Don’ts

Solvency II is strongly supported by the insurance industry. The economic, risk-based framework has proved its value since it was first applied in January 2016.

However, the framework is excessively conservative, contains some measurement flaws and places excessive operational burdens on companies, which create unnecessary costs and barriers to the provision of — in particular — long-term products and investments.

The Solvency II review should not lead to a fundamental overhaul of the system. Instead, targeted improvements are needed. The resulting amendments should lead to a better reflection of insurers’ real risk. In aggregate, the impact of all changes should lead to a justified and needed reduction in capital requirements and volatility.

This document sets out Insurance Europe's key positions on the review of Solvency II.

Published 25 February 2021