Directive 2009/138/EC on the taking-up and pursuit of the business of insurance and reinsurance (the “Solvency II Directive”) sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure. In February 2019, the European Commission asked the European Insurance and Occupational Pensions Authority (“EIOPA”) to provide technical advice for a comprehensive review of the Solvency II Directive (the “Call for Evidence”). EIOPA, accordingly, issued a Consultation Paper on the Opinion on the 2020 review of Solvency II (the “Consultation Paper”) in October 2019.
The FMLC has submitted a response to the Consultation Paper. It has drawn attention to uncertainties in the proposals made by EIOPA for amendments to the Solvency II Directive with particular reference to the freedom of establishment and freedom to provide services, the calculations for Expected Profits In Future Premiums, and the long-term guarantee measures.
The letter which the FMLC submitted to EIOPA with the Consultation Response Form is available to download.
Available as: PDF.