European Commission tempts insurers back to ABS buffet

European Union Commission adobe stock EU
By Asad Ali
25 Apr 2018

The European Commission intends to lower capital charges for insurance companies’ ABS holdings only two years after Solvency II rules were implemented, recognising that the low interest rate environment has led insurers to riskier investments.

Insurers will benefit from lower capital charges against securitization investments in senior and some non-senior tranches under the Commission’s proposals to amend the Solvency II framework implemented in January 2016, according to research from Rabobank.

The proposal, in the form of a

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