Under the Solvency II Directive, the Commission is required to review certain areas covered by the Directive by 2020.
Accordingly, the Commission has sent EIOPA a formal request for technical advice on the review of the Directive. EIOPA is asked to review a number of areas, including:
- the function of the matching adjustment and volatility adjustment;
- the design of the risk margin;
- Solvency Capital Requirement standard formula;
- supervision of and capital management within a group of insurance or reinsurance undertakings;
- provisions relating to macro-prudential supervision; and
- recovery and resolution provisions.
EIOPA is also asked to advise on whether there is need for minimum harmonising rules for national insurance guarantee schemes, whether the current supervisory powers support appropriately firms operating on a cross-border basis, and whether there should be harmonisation between the tiering structures for own funds categorisation of Solvency II and of CRR.
EIOPA is asked to deliver its technical advice by 30 June 2020.