The European Commission has today adopted a comprehensive review of EU insurance rules (known as “Solvency II”) so that insurance companies can scale up long-term investment in Europe's recovery from the COVID-19 pandemic.
Today's review also aims to make the insurance and reinsurance (i.e. insurance for insurance companies) sector more resilient so that it can weather future crises and better protect policyholders. Moreover, simplified and more proportionate rules will be introduced for certain smaller insurance companies.
Insurance policies are essential for many Europeans and for Europe's businesses. They protect people from financial loss in the case of unforeseen events. Insurance companies also play an important role in our economy by channelling savings into financial markets and the real economy, thereby providing European businesses with long-term financing.
Today's review consists of the following elements:
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