EU regulator reveals plan to assess sustainability risks under Solvency II

The European Insurance and Occupational Pensions Authority is seeking feedback on its proposals to examine the links between sustainable investments and solvency risks.

Earlier this week, the EU insurance regulator formulated its position on how it intends to assess insurers’ sustainable assets and activities in the review of Solvency II – the EU insurance regime that regulates European insurers’ governance, accountability and risk management systems, as well as how much capital they need to hold to reduce their risk of insolvency.