Solvency II Regulation: Revision Package

Yesterday September 22, 2021 the European Commission adopted the long-awaited “revision package” of the Solvency II regulations.

The overarching objective is to ensure that insurers and reinsurers continue to invest and support EU policy priorities, in particular to finance the post-Covid recovery, complete the Capital Markets Union and channelling the funds to implement the European Green Deal. The revision, aimed at filling gaps in the current regulatory framework, would aim to make the insurance and reinsurance sector more resilient so that it can withstand future crises and protect policyholders.

At a first reading, however, the corrective elements made to the legislation to mitigate the high volatility of the Solvency balance sheet, which occurred on the Italian market, would seem ineffective and could also penalize long-term investments. 

Here you can find the published document.