European Insurance Industry Disappointed with European Parliament’s Position on Solvency II Review

The European insurance industry has expressed some disappointment by the position adopted by the European Parliament on the review of Solvency II.

In this regard, Olav Jones, Deputy Director General of Insurance Europe, said: “Overall, it is an improvement on the initial proposal from the European Commission and the EU Council text in areas such as capital, volatility and proportionality. However, it is disappointing that some of the original ambitious proposals have been watered down. This is one Lost opportunity to enable the insurance industry to provide even more services to consumers and invest even more in Europe. Private investment is vital for Europe to achieve its green and digital transformation goals. One of the key objectives of this review is for insurers to invest more in long-term capital for the economy. The European Commission has also committed to simplifying and reducing notification obligations in and 25%. We ask that all this be reflected in the final text”.

In any case, from Insurance Europe they have reiterated that they welcome the review of Solvency II, which seeks strengthen an EU framework that protects policyholders and can also increase industry’s contribution to a green recovery. A key element, in the opinion of this entity, is to address concerns about possible failures to measure capital requirements. All this generates, according to Insurance Europe, unnecessary barriers so that insurers offer the products, guarantees and long-term investments that customers need. They also limit the ability of insurers to invest and undermine the global competitiveness of European insurers. Therefore, we insist on the need to review the text to implement the key principle of proportionality and avoid disproportionate costs that ultimately fall on the customers.