The European Parliament has approved the proposed amendments to the Solvency II Directive, the European supervisory framework for the insurance sector. This means that the previously achieved negotiation result of December 2023 has now been formally approved.
The final text of the Solvency II Directive is expected to be published in the Official Journal before the end of 2024, after verification by specialised lawyers of, among other things, correct wording, numbering of articles and translation into official EU languages.
The Dutch Association of Insurers is reasonably satisfied with the agreement, more than four years after the revision of the directive started. The adjusted capital requirements will help the European insurance industry, as Europe's largest institutional investor, to play its role in the huge green and digital investment challenges Europe faces in the coming years. This has always been the commitment of the Dutch Association and Insurance Europe (IE), the umbrella organisation for European insurers. Earlier this week Insurance Europe, called on the European Commission to ensure that the technical implementation rules are properly aligned with the political agreement. This also applies to the EU's previous commitment to keep the reporting burden as low as possible. The proposed mandatory audit requirements on top of the existing supervisory procedures and additional reporting templates actually increase that burden, as do the costs. This is not in the interest of policyholders and other stakeholders. Only when the technical implementation rules have been laid down will insurers know exactly where they stand.
In the position paper 'Delivering on the agreed ambitions of the Solvency II review' , Insurance Europe outlines the main necessary results and the benefits of the review results. Want to know more? Take a look at the theme page on Solvency.
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