Insurance authority calls for comments on investigation into alternative investments

Eiopa, europe

The European Insurance and Occupational Pensions Authority (Eiopa) has released a discussion paper about the Solvency II treatment of long-term investments.

In the report, Eiopa analysed the suitability of current capital requirement proposals for long-term asset classes.

The asset classes investigated were:

  • Private equity/venture capital,
  • Socially responsible investments (SRI) and social business debt and equity finance,
  • Infrastructure project debt and equity, and
  • Securitisations of SME debt.

Eiopa said that its analysis showed the current capital requirements of the Solvency II regulations adequately deal with the characteristics of these investment areas. As such, the paper said that no reduction in the capital requirements for long-term financing was necessary.

Eiopa is calling for comments from the industry about the findings, and respondents must reply by 28 May.

The investigation was requested by European Commission director general for internal market and services Jonathan Faull in a letter to Eiopa chairman Gabriel Bernardino last year.