The Directorate General for financial stability, financial services and capital markets union organised a conference to discuss the challenges and opportunities of the review of the Solvency II directive. The conference furthermore aimed to gather ideas on whether new risks or developments that insurers face or are going to face would require regulatory action.
Valdis Dombrovskis, Executive Vice-President of the European Commission as well as EIOPA Chair Gabriel Bernardino gave keynote speeches. Discussions were organised around four panels, covering the areas to be reviewed, and allowing further exchange on the future of the European insurance sector. The list of speakers included experts from the insurance industry, from the supervisory community, from the civil society and from the European Parliament.
Solvency II harmonised the prudential framework for insurers and reinsurers in the EU with its entry into application on 1 January 2016. It has defined a single rule book for risk based capital requirements and advanced risk management. In 2020, the Commission is conducting a review of the Solvency II Directive in line with the legal mandate. This review comes after a technical review of the Level 2 measures under Solvency II in 2018
The legal mandate for the review in 2020 requires an assessment of the functioning of the measures for insurers’ long-term guarantees and the calculation of capital requirements. The mandate also asks the Commission to consider the potential benefits of enhancing insurance group supervision via EU-wide harmonisation of rules on insurance guarantee schemes as well as rules on early intervention and resolution.
Taking into account the legal mandate, the Commission has sent a request for technical advice to the European Insurance and Occupational Pensions Authority (EIOPA). In that context, the Commission has also identified the proportionality of the prudential rules as an additional priority for the review. EIOPA is expected to deliver its final advice by the end of June 2020 and it currently running a public consultation until 15 January 2020.