The European Commission published a roadmap on the review of prudential rules (Solvency II).
The Commission wants to know whether the directive still offers “the right incentives for insurers to support the long term financing of a strong, sustainable and resilient economic recovery in the EU.” Insurance firms in the EU must set aside enough capital to cover unexpected losses in a crisis, as well as implementing robust internal risk assessment and disclosing certain relevant information.
These rules in the Solvency Directive will be reviewed, and possibly simplified for smaller firms – especially:
- long-term guarantee measures
- solvency capital requirement
- minimum capital requirement
- supervision of firms operating in different EU countries / groups of firms.
This roadmap is open for feedback for 8 weeks.
The deadline for feedback is 26 August 2020.