The EC’s comprehensive review of Solvency II

On 22 September 2021, the European Commission conducted a comprehensive review of Solvency II, taking into account the advice formulated by EIOPA. The review has led to a legislative proposal to amend the Solvency II Directive (Directive 2009/138/EC) and a legislative proposal for a new Insurance Recovery and Resolution Directive.

The amendments should help insurers to contribute to the European Green Deal, financing economic recovery after COVID-19 and the constitution of the Capital Market Union.

One of the goals is to create incentives for insurers to invest more in long-term capital for the economy contributing to the recovery after the COVID-19 pandemic.

Additionally, In the context of ESG, insurers should take better account of certain risks related to climate. An impact on the current regulatory reporting framework should be expected once the amendments are introduced.

The next steps

The proposal has been provided to the European Parliament and will be discussed with the different stakeholders. After the negotiations and the approval of the definitive legislation, which is expected to come into force in 2023/2024, member states should translate the new Directive to their national legislation and have 18 months to apply the Directive. However, insurers should put some effort in the assessment of the proposed changes and determine an implementation strategy.

How could b.fine guide you in your Solvency II journey?

b.fine closely follows the latest developments regarding the Solvency II regulatory framework. With our expertise in insurance, we can help you with the assessment of the changes and the implementation projects. The new legislation will be fully adopted by our SaaS solution b.rx, which can help to streamline your regulatory reporting and submission to the supervisor in an efficient way. In addition, you don’t need to wait until the new legislation is adopted.

Are you interested to get a demo on b.rx? Don’t hesitate to reach out.

Do you want to get a first view on the proposed amendments?

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