European Commission Proposes Introducing New Infrastructure Asset Class Under Solvency II After EIOPA Advice

13 October 2015
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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.