EU Council agrees position on proposed changes to Solvency II

The Council of the EU has agreed its position on the proposed amendments to the Solvency II Directive. The agreed position:

  • should ensure a balanced review of the SII prudential framework in terms of capital requirements;
  • aims to improve the protection of insurance policyholders through enhanced cooperation between supervisory authorities;
  • continues to prevent insurer failure thereby contributing to the stability of the financial sector; and
  • will assign new tasks to EIOPA including:
    • reporting on risks related to biodiversity loss by insurers (together with natural disasters and climate-related risks); and
    • defining consistent guidelines for insurers when assessing their macroprudential risks.

Having agreed its position, the Council can begin negotiations with the European Parliament on the proposed changes.

Lucy Hadrill