The Council of the European Union has approved the Omnibus II Directive, ensuring that the implementation of the Solvency II regime is on track for the start of 2016.

The Omnibus II Directive introduces some notable amendments to the Solvency II Directive. In particular, the Omnibus II Directive includes the provision of specific tasks for the European Insurance and Occupational Pensions Authority (EIOPA). It also contains a set of measures that clarify the treatment of insurance products with long term guarantees, including annuities, in order to mitigate the effects of artificial volatility and a low interest rate environment.

The next step is for the Omnibus II Directive to be published in the official journal of the EU. It will enter into force the day following the publication.

The latest developments on the Solvency II Directive can be accessed by clicking here.