Insurance Europe has urged the European Commission (EC) to adhere to the established political consensus and EU targets during the technical discussions of the Solvency II review. The federation expresses its concerns in a letter addressed to EC Vice President Valdis Dombrovskis and Commissioner Mairead McGuinness before the inaugural technical session by the EC’s expert group on banking, payments, and insurance scheduled for May 15. Insurance Europe worries that deviations in the detailed negotiations from the agreed objectives could hinder the sector’s ability to support broader EU policy goals. The industry warns against reversing the EU Parliament and Council's agreement to limit the impact of changes to the risk correction, a crucial component of the volatility adjustment that shields insurers from unwarranted volatility in the financial markets. “It is very important to get this and other key calibrations, such as those relating to the extrapolation of the risk-free interest rates and risk margin, right,” Insurance Europe says. The federation also urges the EC to fulfil its commitment to slash the reporting burden by 25 per cent, which it believes is holding back innovation and investment.
