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Insurance rules’ review: encouraging solid and reliable insurers to invest in Europe’s recovery


Publication date
22 September 2021
Related department
Directorate-General for Financial Stability, Financial Services and Capital Markets Union


On 22 September 2021, the Commission adopted a comprehensive ‘review package’ of Solvency II rules. The overall aim is to ensure that insurers and reinsurers in the EU keep investing, and support the political priorities of the EU – in particular

The review also fills the gaps in the current rules and makes the insurance and reinsurance sector more resilient, so that it can weather future crises and protect policyholders. This is important because insurers have the potential to provide European businesses with long-term financing and offers vital protection to the EU economy, helping households and businesses manage their risks.

Insurance protection is a prerequisite for many activities regularly carried out by businesses, financial market participants and in individual households. The sector also offers solutions for retirement income and helps channel savings into financial markets and the real economy.

Solvency II has revolutionised the European insurance framework and its application since entering into application in 2016. European insurers and reinsurers are now much better equipped to withstand risks and continue financing investments. The review package does not represent a complete overhaul of the current rules, but rather makes targeted adjustments.

The next step is for the European Parliament and the Member States in the Council to negotiate the final legislative texts on the basis of the Commission’s proposals.