- On 15 October 2019, the European Insurance and Occupational Pensions Authority (“EIOPA”) published its proposed reforms to Solvency II as part of the European Union-wide formal review mechanism.
- EIOPA made clear that it did not seek to rewrite Solvency II and argued that “Solvency II has largely been a success”. However, it did make a number of proposals to improve existing structures and ensure greater harmonisation across the European Union. EIOPA’s proposals include new regulatory tools for: macro-prudential issues and recovery and resolution. The results from an earlier consultation in July of this year on harmonising national insurance guarantee schemes will also be included in its final proposals from the 2020 review.
- EIOPA has indicated that its proposal to reform the design of the volatility adjustment will be the most contentious reform in the 2020 review.
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