Omnibus II Effective Measures in Adjusting the Current Solvency II Framework

The article describes some difficulties arising in connection with implementation of Solvency II at the Member State level. The main objective of this paper is to present the problem solving of Solvency II Directive of insurance and reinsurance on long-term guarantee package with the help of the new Omnibus II Directive. For this purpose in the article were investigated the results of last impact assessment with long-term guarantees package to the current Solvency II framework to cope with artificial volatility and low interest rate environment, and to ensure both transparency and level-playing field. After the impact assessment EIOPA analyzed each measure against the objectives and recommended the inclusion of the following measures: extrapolation, classical matching adjustment, transitional measures, and extension of the recovery period, not to include the so-called extended matching adjustment on the basis that it would not provide sufficient policyholder protection.