“The political choices on Solvency II should also be reflected in the Delegated Regulation”

"The revision of the Delegated Regulation will determine whether the Solvency II Review will ultimately reduce or add burdens for the industry. If the Commission is serious about strengthening European competitiveness, the political agreement confirmed by the co-legislators last year should be implemented consistently. Germany and Europe are strong insurance locations. But this position must be actively defended. We therefore welcome the fact that the European Parliament is insisting on the implementation of key political decisions at the technical level.

In our view, this includes a stable valuation method for long-term liabilities that ensures certainty and stability. Particularly in view of the objectives of the Savings and Investments Union, technically unfounded experiments with an unclear outcome should not be used to restrict life insurers’ ability to continue to offer their customers long-term security. Furthermore, pragmatic proportionality rules could prevent Solvency II from placing an excessive burden, particularly on smaller insurers."

Background

The amending Directive on Solvency II was adopted by the Council of the EU and the European Parliament in November last year.  

The European Commission is currently working on draft amendments to the Delegated Regulation under Solvency II. These are expected to be submitted for public consultation by the summer. The draft will then be finalized, officially adopted by the European Commission, and sent to the European Parliament and Member States represented in the Council. The Council and Parliament will then have three months to raise objections. If there are no objections, the Delegated Regulation is published in the Official Journal and enters into force.