The 2020 Solvency II Review and update on earlier amendments

The Solvency II Directive requires that certain areas must be reviewed by the European Commission by the end of 2020. The Commission has now written to EIOPA requesting its advice by 30 June 2020 on items that it has identified as deserving a reassessment. In forming its advice, we expect that EIOPA will issue a series of industry consultations addressed to various stakeholders over the coming months. Any proposed changes will be high on the agenda of actuarial functions and risk functions and (re)insurers will need to carry out an impact assessment in relation to areas affecting them. In this briefing note, we set out the areas covered by the Commission’s latest request for the 2020 review of the whole Solvency II framework. We also cover a separate request that the Commission has issued to EIOPA related to insurers’ asset and liability management, which is also part of the 2020 review process as well as an update on the latest news in relation to the 2018 interim review of the Solvency II Delegated Regulation.