Sustainability within Solvency II: EIOPA Opinion
This commentary looks at the EIOPA Opinion on Sustainability within Solvency II.
08 October 2019
- On 30 September 2019, EIOPA (European Insurance and Occupational Pensions) published its Opinion on Sustainability within Solvency II
- Overall, European institutional investors are known to be leaders in ESG integration, but European insurers do not appear to be consistent contributors to this leadership
- A key issue insurers and regulators have to deal with when thinking about incorporating sustainability, is a difference in time horizon between the annual insurance renewal cycle and the longer-term impact of climate change
- Insurance companies should expect increasing regulatory scrutiny of the extent to which they incorporate sustainability factors into their investment practices as well as underwriting policies and practices
- Insurers will need to develop their own ESG policies and develop or amend their investment strategies to bring them in line with these policies