This briefing explains why the EU needs to show ambition on sustainability in the upcoming review of Solvency II, the legislation that sets out the rules for insurers. This will help to preserve the stability of the insurance industry and the financial sector as a whole, and will enable insurers to support the transition to a sustainable economy.
This briefing seeks to:
- show that current EU insurance regulation does not adequately integrate sustainability considerations;
- highlight the important role that insurers play in supporting a transition to a sustainable economy;
- explain why incorporating environmental, social and governance (ESG) considerations contributes to the stability of the insurance industry;
- provide concrete recommendations on how Solvency II can better integrate sustainability in its governance, disclosure, and prudential (risk) provisions.