EIOPA proposes improved proportionality for captives under Solvency II

Some captive insurers domiciled in European Union member states may be set for greater proportionality under Solvency II after the European Insurance and Occupational Pensions Authority (EIOPA) published its opinion in the latest stage of review of the insurance directive.

Solvency II came into effect across the EU on 1 January, 2016 with the captive insurance market largely disappointed in their efforts to achieve a significant degree of proportionality for the self-insurance vehicles. This latest review by EIOPA has provided an opportunity for further progress to be made and the first responses are relatively positive.