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The briefing outlines which key areas of Solvency II need to be addressed. These include reducing the cost of capital in the risk margin, and the reduction of capital requirements for long-term investment in equity beyond unlisted equity.
The briefing also outlines which areas should not be changed.
In particular, it says that there should be no change to interest rate risk capital requirements and no artificial limits imposed on the loss absorbing capacity of deferred taxes.
It adds that EIOPA’s proposed changes in these areas are not necessary, conflict with the Juncker Commission’s growth objectives and should not be taken forward.