EIOPA has published a potential macroprudential approach to the low interest rate environment in the Solvency 2 context to seek views on whether it might help to further promote financial stability under the Solvency 2 regime. EIOPA suggests a set of Solvency 2-compatible instruments for:

  • increasing the resilience of the insurance sector;
  • limiting risky behaviour of insurers collectively searching for yield; and
  • avoiding procyclicality.

(Source: EIOPA publishes potential approach to Solvency 2 interest rate environment)