Council approves amending rules for the insurance industry

14 April 2014

The Council approved amendments to EU rules for the insurance industry in respectof the powers of two EU-level supervisory authorities ESMA/EIOPA.

The amendments, introduced via the so-called Omnibus II directive, include the provision of specific tasks for European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA).

In particular, they clarify the role of EIOPA in ensuring harmonised technical approaches for the calculation of technical provisions and capital requirements for insurance companies.

The new rules amend directives Solvency II on insurance and 2003/71/EC on prospectuses, following the creation of EIOPA and ESMA in 2010 as part of a new European system of financial supervision.

The amendments fall broadly into the following categories:

• definition of the appropriate scope of technical standards;
• enabling EIOPA and ESMA to settle disagreements;
• enabling the existing rules to operate in the context of the new supervisory system;
• transitional requirements and other amendments to the Solvency II directive.

Adoption of the directive follows an agreement reached with the European Parliament at first reading on 13 November, approved by the Permanent Representatives Committee, on behalf of the Council, on 27 November.

The member states have until 1 January 2016 to transpose the directive's provisions into national law.

Press release

© Council of the European Union