The recent publication of the draft minutes of the 22nd meeting of the European Insurance and Occupational Pensions Committee, which took place on 4 July 2012, has revealed a number of areas of disagreement between the Parliament and the Commission in relation to the Solvency II Directive. The chair of the meeting, Karel Van Hulle, head of the insurance and pensions unit and the European Commission’s Directorate-General for Internal Market and Services, identified two “difficult” areas with the text approved by the Parliament’s ECON Committee in March 2012.

First, Mr. Van Hulle noted that the Parliament’s current view that Level 1 measure should contain all legislation involving policy choices and strategic decisions and not just principles, while Level 2 should only contain technical requirements, may need to be changed. Secondly, Mr. Van Hulle pointed out that it had been previously agreed that aspects of the long-term guarantee package, including extrapolation and matching premium, would be dealt with at Level 2 and not at Level 1, as was the Parliament’s current view.