The European Commission’s draft Solvency II Delegated Regulation is a major step toward reshaping Europe’s prudential framework. While supportive of its ambition, Insurance Europe has stressed that improvements are needed in three critical areas:
Reducing volatility: avoid artificial swings in solvency ratios by refining the volatility adjustment and interest rate risk calibration.
Fostering growth and competitiveness: ensure European insurers can compete globally and channel more capital into infrastructure, small and medium-sized enterprises, and the green transition.
Reducing operational burdens: deliver genuine simplification in reporting and proportionality, rather than duplicating or shifting compliance costs.
This follows recent analysis from SCOR, which highlighted the delicate balance between solvency strength, capital efficiency, and reinsurance as a tool for capital management. The debate reflects a common theme: Europe’s insurers need a framework that supports growth and resilience, while avoiding regulatory fragmentation.
At iQuant Solutions, we continue to monitor the evolution of Solvency II and support our clients in preparing for the implementation date with adaptable and efficient reporting solutions.
Read Insurance Europe’s full response: https://www.insuranceeurope.eu/mediaitem/6b454a80-403b-4433-aa03-8bcb2a29ff15/Response+to+EC+Solvency+II+Better+Regulation+consultation.pdf?inline=1
Access the 2024 SCOR review: https://www.scor.com/en/expert-views/solvency-reinsurance-europe-review-solvency-ii-report-year-end-2024
