Proposed Updates To Solvency II Delegated Regulation Published

The European Commission has just published a draft delegated regulation to amend the Solvency II Delegated Regulation and create a revised prudential framework for insurers and reinsurers, facilitating better capital management and greater investment opportunities, in light of the changes to Solvency II and the proposed Securitisation Regulation amendments.

The Commission notes that:

• the calculation of capital requirements under Solvency II needs improvement to ensure risk-sensitivity and to appropriate treatment of long-term investments;
• provisions on reporting and disclosure could be meaningfully reduced, to remove unjustified compliance costs;
• the implementation of proportionality has been insufficient to reduce the regulatory burden, especially for captives and reinsurers; and