Insurance Europe aims to cut red tape on new sustainability risks rules

Insurance Europe has responded to an EIOPA consultation on Regulatory Technical Standards (RTS) on the management of sustainability risks under the Solvency II framework – but it has also made suggestions to cut red tape and simplify rules.

In its response, Insurance Europe highlighted that European insurers fully support the European Commission’s sustainability goals and emphasises that existing Solvency II requirements, enhanced in August 2022, already ensure effective risk management of sustainability risks in the insurance sector. It notes that additional duplicative requirements would impose unnecessary costs without clear benefits.

The industry proposes the following changes to the SRP proposals to align which will reduce operational and reporting burdens, consistent with the Commission’s Omnibus initiative to cut red tape and simplify EU rules for citizens and business.

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