EIOPA has commented on the European Commission’s package of Solvency II proposals, which comprise an amended Solvency II Directive, a Communication on it, and a proposal for an Insurance Recovery and Resolution Directive.
It is pleased the Commission has largely followed its advice, and notes the importance of EIOPA’s own role in stronger cross-border supervision. It stresses that it must have the powers and tools necessary to take action when it identifies problems.
EIOPA is critical that the Commission does not appear to have considered minimum harmonisation of insurance guarantee schemes, which mean policyholders in different Member States will continue to receive different levels of protection.
Finally, it is pleased that low-risk insurers will be exempted from some requirements, but stresses that the proportionality principle from Solvency II must be embedded in the supervisory review process.