Solvency II faces scrutiny over sustainability impact
The European Insurance and Occupational Pensions Authority is asking for evidence on the effects of the Solvency II regime on the sustainability of firms’ assets and liabilities. But the regulator does not believe in incentivising sustainable behaviour through capital regulations at present, an idea being discussed in the banking sector.
As part of its action plan on sustainable finance, the European Commission asked for EIOPA’s opinion on sustainability in Solvency II, in particular relating to climate change mitigation, last August.
It has invited EIOPA to provide an opinion paper by September 30 this year.The insurance regulator has now ...