October 19, 2021
Markets

Long awaited proposals to reform the EU Solvency II insurance regime are published | Hogan Lovells

On 22 September 2021, the European Commission adopted, among other measures, a Proposal for an extensive revision of the Solvency II Directive. There are several immediate objectives of this reform, including facilitating insurers to increase their long-term investments in order to contribute to the political agenda of the European Union (e.g. Capital Markets Union or the European Green Pact). Another highlight of the Proposal is the increased relevance of the principle of proportionality, already present in Solvency II, and defined as the application of rules proportionate to the scale, nature and complexity of the risks inherent to the insurance business. The review exercise also includes a Proposal for a new Directive on the restructuring and resolution of insurance undertakings. To achieve these goals, the Proposal:

  • incentivises long-term sustainable funding of…

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