Delegated Regulation amending Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)

Summary:

Delegated Regulation - adopted by the European Commission in March 2019 - which amends the prudential rules in the European Union for the insurance sector (supplementing Directive 2009/138/EC - Solvency II).

Further information:

Directive 2009/138/EC (the so-called 'Solvency II' Directive) - as amended by Directive 2014/51/EU - introduces a framework for the taking-up of business and supervision of insurance and reinsurance undertakings in the European Union (EU). Through the definition of risk-based capital requirements across all EU Member States, it allows for a risk-based regulation, enabling a better coverage of the real risks faced by insurers, and contributing to the dual objective of protecting policyholders and preserving the stability of the financial system.

In January 2015, the European Commission's Delegated Regulation (EU) 2015/35 adds to the main Directive in that it specifies the technical rules on numerous aspects of the implementation of the Solvency II Directive, applying to individual insurance and reinsurance undertakings as well as groups. The Action Plan on building a Capital Markets Union (CMU), as well as the CMU Mid-term Review, feature the commitment to unlock more investments and to mobilise capital to be channelled into funding for Small and Medium-Sized Enterprises (SMEs).

This Delegated Regulation lowers the capital requirements for insurers' investments in equity and private debt, also aligning the rules applicable to banks and insurers.

Official

European Commission: Press Release, 08/03/2019: Capital Markets Union: Making it easier for insurers to invest in the real economy http://europa.eu/rapid/press-release_IP-19-1601_en.htm

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