Brussels, 15/04/2014 (Agence Europe) - On Monday 14 April, the Council of the EU finalised the legislative procedure revising the Solvency 2 directive (2009/138/EC), which will introduce prudential requirements across the insurance sector, based on risk up to the year 2016 (see EUROPE 11037).
This legislative text introduces counter-cyclical measures to tackle excessive volatility on the stock exchange and help life insurance companies to be able to continue to offer long-term investment products. These measures are tailored to the specificities of the major national markets and will apply from 2016, in an effort to help the industry reduce demands on own funds. The European Insurance and Occupational Pensions Authority (EIOPA) will look at ways of bringing the different national approaches closer together to calculate capital requirements and equivalent rules in force in third countries. The European Commission will be presenting measures for applying the Solvency 2 directive later this year. (MB)