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Insurance Europe highlighted that the current Solvency II regulatory framework ensures that any issues leading to concerns about systemic risk can be identified and managed in a timely manner.
The existing framework already includes specific reporting requirements for financial stability, biannual financial stability reports and the biennial stress test, as well as liquidity management requirements that are part of the own risk and solvency assessment and the system of governance.
More generally, while it is theoretically possible for real systemic risks to emerge from the insurance sector, the existence of systemic risk in insurance has not been adequately substantiated.
Insurance Europe also noted that the scope of EIOPA’s work in this case goes beyond what it was asked to advise on by the Commission.