On 17 May 2018, the European Commission published the text of a letter and a request for information that it has sent to EIOPA on the impact of the Solvency II Directive on long-term insurance and reinsurance activities. Both documents are dated 27 April 2018.
The request for information says that the Solvency II Directive sets out two review clauses for 2020, one on the standard formula for capital requirements and the other on the long-term guarantee measures. These review clauses set out specific objectives related to the availability of long-term guarantees (LTGs) in insurance products, the behaviour of insurance as long-term investors and, more generally, financial stability.
EIOPA submitted annual reports on the LGT measures in 2016 and 2017. However, in addition to the information provided in these reports, the Commission has identified the areas listed in section 3 of the request for information, information on which it says should help in assessing the appropriateness of the current framework by 2020.
EIOPA is invited to provide the information by 16 December 2019. The Commission asks EIOPA to share its timetable for the work. The Commission will follow up with a call for advice closer to the 1 January 2021 deadline for the review