Key takeaways

• The European Commission has proposed introducing a new asset class under Solvency II for qualifying infrastructure investments in order to encourage investment by insurers in infrastructure.
• The new asset class will benefit from lower capital charges based on an appropriate risk calibration for infrastructure investments, but will also carry more stringent risk management requirements.
• Which infrastructure investments qualify will be decided on a range of criteria such as predictable cash flow, ability to withstand stressed conditions and investor protections.