Tag: ShareAction
In the Commission's proposals for changes to the EU's Solvency II regime, EIOPA has also been asked to look at capital requirements for sustainable ac… In the Commission's proposals for changes to the EU's Solvency II regime, EIOPA has also been asked to look at capi… In the Commission's proposals for changes to the EU's Solvency II regime, EIOPA has also been asked to look at capital requirements for sustainable activities
Sep 24th, 2021
The European Commission has quietly resurrected the idea of a ‘brown’ penalising factor in its latest proposals for reform of the Solvency II directive.
The Commission has proposed that the European Insurance and Occupations Authority (EIOPA), one of the EU’s three financial supervisory authorities, is mandated to review evidence on “the risk profile of environmentally or socially harmful investments”, reporting back by no later than 2023.
“While there is not sufficient evidence at this stage on risk differentials between environmentally or socially harmful and other investments, such evidence may become available over the next years,” the Commission says in the review package of Solvency II, which governs how insurers operate, their disclosures and capital requirements, published by the Commission earlier this week.
If EIOPA finds a risk differential for harmful investments, the report could be a prelude to an introduction of the ‘brown…