In a statement published on Tuesday 23 July, the insurance industry calls on the European Union to use the “golden opportunity“ offered by the Solvency II Directive review to release additional capital.
Insurance Europe believes that by enhancing insurers’ investment capacity, the industry could make a greater contribution to the policy guidelines set out last Thursday by the re-elected president of the European Commission, Ursula von der Leyen, namely increasing competitiveness, speeding up the green and digital transitions and creating a more efficient capital market (see EUROPE 13456/1).
Although the Directive’s review was approved in April under the traditional co-decision procedure (see EUROPE 13397/11), certain technical details regarding implementing the new regulations, which fall under ‘Level 2’ of the Lamfalussy process, have yet to be finalised.
Insurance Europe is calling for improvements that would halve the size and volatility of the ‘risk margin’, the reserve that insurance companies must set aside in the event of insolvency.
“These improvements should be complemented by a reduction in reporting and operational burden for the industry”, added the European federation in a press release on Wednesday.
See the Insurance Europe statement: https://aeur.eu/f/d3x (Original version in French by Bernard Denuit)