The European Parliament (EP) has adopted in plenary the Omnibus II Directive ensuring that the new regulatory framework for insurers is on track for the start of 2016.
The Omnibus II Directive finalises the Solvency II Directive by introducing some significant amendments. In particular, the Omnibus II Directive defines EIOPA’s role in ensuring harmonised technical approaches for the calculation of capital requirements and technical provisions. The Omnibus II Directive also contains a set of measures that clarify the treatment of insurance products with long-term guarantees, including annuities, in order to mitigate the effects of artificial volatility.
Following the EP’s vote on the Omnibus II Directive, the European Commissioner for Internal Market and Services, Michel Barnier, declared:
“The European Parliament has just taken a very important step towards the introduction of a modern and risk-based solvency regime for the insurance industry in Europe as of 1 January 2016, making it both safer and more competitive. This long-awaited and vital reform will finally become a reality”.
The Omnibus II Directive will now need to be formally adopted by the EU Council and published in the Official Journal. It will enter into force the day following the publication.
The latest developments on the Solvency II Directive can be accessed by clicking here