The
Directive amending Solvency II and the
Insurance Recovery and Resolution Directive have just been
published in the Official Journal of the European Union.
Member States must implement the amendments to the Solvency II
Directive into national law by the end of January 2027. One of the
highlights for insurers with long-term liabilities will be the
changes to the calculation of the risk margin, including a
reduction in the cost-of-capital rate to 4.75%. See my previous
post for a more detailed summary of the
key changes arising from the amendments.
Similarly, on the IRRD, EU Member States must implement the
Directive into national law by the end of January 2027. Member
States will have to set up national insurance resolution
authorities, either within existing competent authorities (as
independent departments separate from the supervisory functions) or
as standalone legal entities. The resolution authority will have a
range of tools to deploy when faced with
