The European Parliament's Economic and Monetary Affairs Committee (ECON) on Tuesday 22 January asked the European Commission to take its concerns into account when preparing its draft delegated regulation amending the delegated act of the Solvency II Directive on prudential rules for the insurance sector, which was to be adopted in December 2018.
MEPs, who have written several times to the European Commission, want, in particular, a reduction of the current risk margin in order to boost the financing of the real economy and to encourage the insurers to invest in long-term projects. They also brought up the importance of finding a short-term solution to address the shortcomings of the current functioning of the Volatility Adjustment.
In addition, MEPs are concerned that the delay in adopting the draft regulation could pose difficulties for market players in terms of reporting.
“In order to ensure a smooth process, we hope that the Commission will be willing to assess how Parliament's priorities should be best addressed in this delegated act, and we use this occasion to remind them of Parliament's scrutiny prerogatives as a co-legislator, as set out in Article 290 TFEU”, they write in their statement. Once adopted, the Parliament will indeed be able to oppose this draft regulation. (Original version in French by Marion Fontana)