Solvency II - review

EESC opinion: Solvency II - review

Key points:

  • agrees that the Solvency II rules have proved their worth. However, the experience of the sovereign debt crisis, the low interest rate policy, the initial impact of the COVID-19 pandemic, and the knowledge that other crises will occur, mean that the regulatory framework should be adapted;
  • strongly welcomes the fact that the European Commission is addressing the issue of systemic risks in the insurance sector. The risk profile of insurers is changing;
  • points out that in view of the climate crisis, the insurance sector plays a particularly important role when it comes to insurance against the impact of climate change and new environmental risks;
  • points out that insurers also face higher risks in their role as investors. In particular, material, liability and transition risks relating to climate change are not properly assessed;
  • supports the European Commission's objective of creating a regulatory framework in which the insurance sector plays an even greater role as an investor in financing the transition to a sustainable economy and in tackling the impact of COVID-19 and climate change;
  • at the same time, stresses the considerable interest of civil society in ensuring the stability of the financial sector and calls for sound capital requirements and risk preparedness in the insurance sector;
  • concludes that instability in the insurance sector would significantly set back efforts to tackle the climate crisis and overcome the pandemic.