Solvency II, the harmonised prudential framework for insurers and reinsurers in the EU, entered into application on 1 January 2016. It replaced 28 different regimes by a single set of risk based capital requirements and advanced risk management principles.
Two years after the entry into application, the Commission is conducting a review of the capital requirement calculations in the Delegated Regulation. This review comes after amendments were adopted for infrastructure investments within the context of Capital Markets Union, and before the review of the Solvency II Directive, scheduled for 2020.
Three priorities were identified for the 2018 review: proportionality, consistency with other financial legislation, and removal of undue barriers to financing. In accordance with these priorities, and on the basis of the outcome of the Call for evidence on the EU regulatory framework for financial services (which was conducted between 2015 and 2016), the Commission has sent two requests for technical advice to the European Insurance and Occupational Pensions Authority (EIOPA). EIOPA is expected to deliver its final advice by the end of February 2018.
The hearing was opened by Valdis Dombrovskis, vice-President of the European Commission. Discussions were be organised around four panels, covering the areas to be reviewed, and allowing further exchange of views on the priorities for the future. Speakers included experts from the insurance industry and their asset managers, form the supervisory community, from the civil society and from the European Parliament.