Technical provisions, long-term guarantee measures, own funds, equity risk, spread risk on securitisation positions, other standard formula capital requirements, reporting and disclosure, proportionality, and group solvency

The Council held an exchange of views on a draft Directive setting new solvency rules for insurance companies ("Solvency II" Directive). Following the discussion, and with a view to its meeting scheduled for 4 November, the Council instructed the Permanent Representatives Committee to examine the last questions outstanding, namely questions of supervision and in particular, the balance of powers and responsibilities between national authorities in the supervision of insurance groups. Other relevant issues will also be examined.

The draft Directive responds to the need to modernise prudential regulation of insurance companies, given that existing solvency rules are out of date. Apart from the recasting of 14 insurance directives into one legal text it also aims to establish a new framework for EU regulation and supervision.

The proposal seeks to increase the integration of the EU insurance market, strengthen the protection of policyholders and beneficiaries, enhance the competitiveness of EU insurers and re-insurers and encourage improved legislation in this sector.