Joint call issued for EC to improve SII proportionality rules

Written by Adam Cadle

30/09/2019

Insurance Europe and AMICE have issued a joint call for the EC to improve Solvency II proportionality rules to ensure that insurers are not disproportionately burdened by the regulatory framework.

While Solvency II and, in particular, its risk-based approach is supported by the EU insurance industry, changes are needed to rules on proportionality, the bodies said. This is because currently the sheer volume of rules imposed on companies can be disproportionate and unnecessarily burdensome relative to their activities and risks.

Proportionality is a vital element of Solvency II that was included to enable national supervisory authorities (NSAs) to exercise a proportionate application of regulatory requirements imposed on insurers, in relation to the scale, nature and complexity of their activity.

As such, it can help all insurers to avoid unnecessary costs and can avoid smaller insurers being driven out of business due to regulatory requirements which are excessive relative to their activity.

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