EIOPA consults on first set of advice on Solvency II review

 EIOPA has launched a project in a response to the call for advice by the EC and has published a consultation paper on the first set of advice. EIOPA’s focus is on the review of Commission Delegated Regulation (EU) 2015/35 and in particular the Solvency Capital Requirement (SCR) standard formula. The main goals of the review are to ensure a proportionate and technically consistent supervisory regime for (re)insurance undertakings and to look for possible simplifications in the SCR standard formula as well as to ensure the proportionate application of the requirements.

 The paper includes EIOPA’s advice on areas such as simplified calculations; reduction in reliance on external credit ratings; and risk-mitigation techniques.

 EIOPA asks for comments by 31 August 2017 and aims to issues its second consultation paper by the end of the year.