LONDON (Reuters) -The European Union proposed changing the bloc’s capital rules for insurers on Wednesday to release 120 billion euros ($141 billion) for repairing an economy hit by COVID and to meet climate goals without eroding policyholder protection. Britain, which is home to the world’s biggest commercial insurance market and left the EU last December, has also begun reviewing the capital rules known as Solvency II. Anticipating concerns it was rowing back on rules, the EU said Solvency II would remain the “gold standard”. ‘WRONG DIRECTION’The rule changes, which need approval from EU states and the European Parliament, would release 90 billion euros in the short term and a further 30 billion euros in the long term. EU insurance watchdog EIOPA will conduct centralised climate stress tests of the sector, with insurers also required to conduct long-term climate scenario analysis, it said.

Source: MetroXpress September 22, 2021 12:11 UTC