INSURANCE EUROPE RESPONDS TO SOLVENCY II SUSTAINABILITY PROPOSALS

Insurance Europe has published its response to consultations by the European Commission on draft sustainability amendments to Solvency II and the Insurance Distribution Directive (IDD). Broadly, the European insurance industry supports the Commission’s proposed amendments to integrate sustainability into insurers’ prudential framework and sales processes, the trade association said. However, it has called for the removal of the current definition of environmental, social and governance (ESG) preferences of policyholders, and asked that the reference to ESG preferences of policyholders should be removed in the context of the prudent person principle. Insurance Europe also raised concerns that proposed changes to the IDD appear to apply to all products, not just those which are designed as sustainable products.