Insurance Companies Encouraged to Invest in Long-Term Equity by way of Capital Relief
Published 8 October 2021
Category: Investors Regulation
The EU Commission has published a proposal to amend the EU insurance directive (known as “Solvency II”) so that insurance companies can scale up long-term investments – see more here.
As part of the proposal, the EU Commission will introduce in 2022 technical changes to the criteria attached to the long-term equity category in the Solvency II Delegated Act by lowering the risk charges that are attached to insurance companies’ investment in long-term equity, including investment into alternative investment funds.
According to a press release issued by the EU Commission, it is expected the reduction in capital requirements would reach approximately EUR 10.5 billion under a cautious scenario assuming that only 15% of additional equities would qualify as long-term. This would be a decrease of more than 6% compared to current levels for insurance companies which can be further invested in long-term equity.
Next Step: The amendments to the long-term equity category is expected to be adopted during 2022.
Tags: Solvency II
Also tagged ‘Solvency II’
Commission Adopts Changes to the Risk-Weight of Certain Alternative Investments (Solvency II)
An amendment to the delegated regulation (EU) 2015/35 was adopted by the European Commission 8 March 2019. The legislation includes changes to the risk-weight of certain alternative investments.
Risk ManagementSolvency IIVenture CapitalOther updates
Proposal on Danish implementation of the amendments to CSRD
On 2 July 2026, the Danish Business Authority submitted a draft bill implementing the amendments to the CSRD into Danish law for public consultation.
ComplianceCSDDDCSRDDanish RegulationSustainabilityESMA Launches Consultation Paper on selected KPIs under the Delegated Act under the Taxonomy Regulation
The consultation primarily focuses on the following three main topics: Revision of the OpEx KPI, Voluntary use of OpEx KPI by financial undertakings, and Group Taxonomy reporting.
ComplianceCSRDDisclosure RequirementsESRSSFDRSustainabilityEuropean Commission adopts final revised ESRS and voluntary sustainability reporting standards
The European Commission has adopted the final revised ESRS applicable to companies subject to the EU’s mandatory Corporate Sustainability Reporting Directive (“CSRD”) and a voluntary reporting standard for smaller companies.
ComplianceCSRDDisclosure RequirementsESRSSustainabilitySFDR 2.0 – Council agrees negotiating position
On 24 June 2026, the Council of the European Union agreed its negotiating position on the European Commission's proposal to amend the SFDR, introducing several important clarifications and amendments – including three new categories of financial products: sustainable, transition and ESG basics.
Disclosure RequirementsSFDRSustainabilityExpansion of the special section 7P regime enters into force
The Danish Ministry of Taxation and Economic Growth has announced that the expansion of the special regime for qualifying new and smaller companies in section 7P of the Danish Tax Assessment Act (ligningsloven) will enter into force on 1 July 2026.
Venture CapitalEU Commission presents proposal for EU Inc. (28th regime)
The initiative aims to address long-standing fragmentation across the EU’s 27 national company law systems by introducing a single, harmonised legal structure designed primarily for innovative companies and startups.
Venture Capital