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.