EU Commission pushes for Savings and Investment Union, mobilizing capital from insurers and banks

Brussels – The Commission has adopted two measures to support the essential role that institutional investors, such as banks and insurers, play in financing the EU economy. 

These measures, a note explains, “implement the roadmap set out in
Savings and Investment Union (SIU) strategy and contribute to the EU’s broader objectives of supporting private investment, improving capital market integration, and strengthening Europe’s long-term competitiveness, for the benefit of EU businesses and households.” 

They aim to boost equity investments by banks and insurers, including those made alongside public entities, such as the European Investment Bank or national promotional banks. 

The European insurance sector manages around EUR 10 trillion of assets and is a key institutional investor. 

The amendments to the Solvency II delegated regulation encourage long-term investments by enhancing insurers’ investment capacity. This will allow them to allocate more capital to financing the real economy, while maintaining the robustness of the legal framework and the protection of policyholders. For instance, the delegated regulation includes a dedicated treatment for long-term equity investments by insurers to encourage the financing of European firms and facilitate their access to stable, long-term capital, including through private equity and venture capital.