Insurance Europe calls on the European Commission to ensure that the technical implementing rules (level 2 rules) are properly aligned with the political agreement reached at the end of April on the Solvency II review. Only when these rules have been laid down will insurers know exactly where they stand.
Insurance Europe warns that if the level 2 technical negotiations deviate from the objectives of the agreement, it "undermines the industry's ability to contribute to the EU's wider policy objectives through investment". Consider, for example, the green and digital investment challenges that Europe will face in the coming years. It is precisely the details in the implementation that play a crucial role in the impact and benefits of the revision. The European umbrella organisation for insurers is particularly concerned that the EC will reverse a previous agreement between the EU Parliament and the Council to limit the impact of changes in risk adjustment. "This is a key element in the volatility adjustment that protects insurers from unnecessary volatility by financial markets," Insurance Europe said. It is also important to adjust the extrapolation of risk-free interest rates and the risk margin in such a way that the positive effects for insurers actually occur.
Reduce reporting burden
Insurance Europe is also calling on the European Commission to use the negotiations to deliver on its promise to reduce the reporting burden within Solvency II by 25% and to keep new requirements as limited as possible.
The final text of the Solvency II Directive is expected to be published in the Official Journal before the end of 2024, following verification by specialised lawyers of, among other things, correct wording, numbering of articles and translation into official EU languages.
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