Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

European insurers seek key reforms to Solvency II review

Open-access content Huw Morris — Tuesday 1st September 2020
@Shutterstock
@Shutterstock

 

European insurers are calling for key omissions and refinements to be redressed as part of a review of the Solvency II regulatory framework.

In its response to the European Commission’s inception impact assessment (bit.ly/2YRcejB), Insurance Europe said long-term liabilities must not be exaggerated, while capital requirements for investment should be appropriate. 

Even if an insurer can “afford” a capital increase, higher capital requirements for interest rate risk shocks can have a significant negative impact on insurers’ ability to offer products with long-term guarantees and push them to shift risk to policy-holders.

Although the group supports the European Commission’s objective of achieving a level playing field and strong policy-holder protection, it said  there is no need to harmonise insurance guarantee schemes as Solvency II, already offers very high and sufficient levels of protection. The focus should be on ensuring Solvency II is applied appropriately across all member states and on supervisory coordination of cross border activity, it said.

Given that systemic risk is limited for the insurance sector and that Solvency II is already very comprehensive, any new measures should be limited to applying the International Association of Insurance Supervisors holistic framework, Insurance Europe added.

Europe’s insurers do not support non risk-based reductions in capital requirements as incentives to tackle climate change. They argue that addressing the measurement flaws and other barriers in Solvency II will create strong enough incentives when combined with insurers’ own natural interest and business model, together with the European Commission’s regulatory initiatives such as the Sustainable Finance Disclosure Regulation, Taxonomy and the Non-Financial Reporting Directive and the wider EU Green Deal.

Europe’s insurers noted that other jurisdictions appear to take account of the special characteristics of insurers’ long-term business model, as well as their economic and social goals in their regulatory frameworks and this should be reflected in the European Commission’s review of the framework. 

You may also be interested in...

Damaged tower storm Laura

Hurricane Laura causes up to $9 billion of damage

Losses caused by Hurricane Laura could range between $4 billion to $9 billion, according to risk modelling firms
Wednesday 2nd September 2020
Open-access content
Gig economy faces blow from shift to full-time staff

Gig economy faces blow from Just Eat’s shift to full-time staff

The insurance sub-market for the gig economy is expected to fall in the short-term and face more serious consequences in the future if companies follow Just Eat’s decision to classify staff as full-time employees.
Wednesday 2nd September 2020
Open-access content
Protesting coal and tar sand

Campaigners doorstep Lloyd’s for insuring coal and tar sand

Campaigners doorstep Lloyd’s for insuring coal and tar sand Climate change campaigners yesterday protested at the headquarters of Lloyd’s for insuring coal and tar sands operations around the world. Insure Our Future, a global network of non-government organisations and social activists, claims Lloyd’s has become the “insurer of last resort” for fossil fuel projects, including the proposed Adani Carmichael coal mine in Australia, the Trans Mountain tar sands pipeline in Canada and reinsuring Polish coal mines. The campaigners argue 19 global insurers have restricted insurance and investments
Wednesday 2nd September 2020
Open-access content
Cover of IFoA strategy 2020 2024

IFoA strategy sets out key priorities up to 2024

A strategy setting out key priorities in a “radically altered new world” up to 2024 has been unveiled by the Institute and Faculty of Actuaries (IFoA).
Friday 4th September 2020
Open-access content
House with umbrella

Homeowners in London pay 31 per cent more insurance than the UK average

London homeowners pay almost a third more than the average in the UK to insure the property and contents, according to new figures.
Monday 7th September 2020
Open-access content
Money and green shoots

UK investment consultants launch sustainability group

Twelve leading investment consultancies in the UK have launched a working group to improve sustainable practices across the industry.
Tuesday 8th September 2020
Open-access content
Filed in
News
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ