On 28 March 2012 the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its consolidated report of compromise amendments for Omnibus II. This text follows the approval of the Parliament’s latest draft amendments at the ECON vote on 21 March 2012 and sets out their proposal for the Solvency II Framework Directive going into the trilogue discussions with the European Commission and the Council of the European Union.
While the report includes a significant number of proposed amendments to the Level 1 text, particularly in relation to products with long-term guarantees, in many cases it is unclear how these should be applied in practice. Furthermore, the text appears to be overly restrictive, which will need to be addressed during the trilogue discussions.
This summary includes a brief analysis of what these proposals may mean—both for companies and Solvency II in general.
This analysis has been prepared primarily from the perspective of the UK, reflecting the application of Solvency 1 in the UK and the issues influencing Solvency 2. These may or may not be relevant in other jurisdictions dependant upon how they have implemented the legislation. A version of this paper applicable to the Dutch market is available at nl.milliman.com.