Login to access your exclusive member-only content and account information.


Not a member? Join us

  • Operate to the highest level of professional standards
  • Access authoritative industry research and data
  • Navigate the complex EU regulatory environment
  • Network and engage with industry leaders
News & opinion

Solvency II - Marketing to insurers in Europe, or how to find the right numbers

29 Oct 2020

49. 39. 36. 30. 22.

Those are neither a mysterious secret code nor lottery winning numbers. Converted into percentages these correspond to the amount of capital insurers must typically set aside when investing in private equity and infrastructure. And these matter for any manager wishing to market its fund to European insurers.

Whether an investment is subject to a 49% risk weight (the one for EU funds that are not closed-ended and unleveraged or for the majority of non-EU funds) or a much lower 22% (the one that applies to exposures that are part of long-term equity - LTE - portfolios), these risk charges affect the insurers’ economic rationale for investing into equity asset classes. And, ultimately, their ability to commit long-term capital to the economy through equity funds even in cases where the ultimate policyholder is protected.  

The last ten years have seen intense debates on the exact level at which these percentages are set. With the review of Solvency II, scheduled for next year, we can expect these discussions to carry on into the next decade.

At the heart of the review will be the debate around the criteria under which insurers can set up their LTE portfolios subject to a preferential risk charge.

As EIOPA itself recently pointed out, only a few insurers are currently using the opportunity. This is not a surprise. Criteria have been widely criticised, including by Invest Europe, to be too restrictive and, perhaps most importantly, too complex. As a result, most long-term investments remain subject to higher risk weights, not appropriate to their risk profile, with the dramatic consequence that long-term commitments are effectively disincentivised.

It is therefore essential that policymakers listen to insurers and take the necessary steps in the upcoming review, whether it relates to the rules on ring-fencing, liquidity, or conditions on diversification or geographic origin, to make this category work for insurance investors across all EU Member States. 

But Solvency II is not only about prudential capital requirements. It also requires the insurer to prepare detailed reporting to its national competent authority as well to assess risks being part of the internal investment and risk management process based on the Prudent Person Principle (PPP). Solvency II investors can fulfill those requirements only if the relevant granular look-through data is provided to the manager on a regular basis. The EU industry-wide standard for the data exchange between investors and managers is the Tripartite Template 5.0 (TPT 5.0). 

As more and more managers are facing difficulties meeting these reporting obligations on behalf of their insurance investors, Invest Europe and SOF, a risk and reporting service provider for alternative investments, teamed up to prepare some guidance on the most appropriate way to report. Such guidance, which is based on the TPT 5.0 but adapted to the private equity specificities, is now available on our website exclusively to our members. If you are a fund manager faced with a reporting obligation, it will help you better understand how to comply with the requirements.

Next to this Guidance, you can also read our Solvency II Guide and with all the submissions we have made to the EU authorities in the past few years. Meanwhile, do not hesitate to also visit SOF website if you have further questions on the reporting requirements.

Want to discuss?

We are always keen to hear from you.


What can I do to manage cookies stored on my computer or phone?

You can accept or refuse cookies. Accepting cookies is usually the best way to make sure you get the best from a website.

Most PCs automatically accept them but you can change your browser settings to restrict, block or delete cookies if you want. Each browser is different, so check the 'Help' menu of your particular browser (or your mobile phone's handset manual) to learn how to change your cookie preferences. Many browsers have universal privacy settings for you to choose from.

Help on how to set and customise your cookie settings for your browser

How to manage cookies in Internet Explorer

Cookie settings in most versions of Internet Explorer can be found by clicking the tools option and then the privacy tab.

How to manage cookies in Firefox

Cookie settings in Firefox are managed in the Options window's Privacy panel. See Options window - Privacy Panel for information on these settings.

How to manage cookies in Chrome

Click on the spanner icon on the toolbar, select settings, click the under the bonnet tab, click on content settings in the privacy section.

How to manage cookies in Opera 

You can manage cookies in Opera if you Click on settings, then Preferences, then Advanced and finally Cookies

How to manage cookies in Safari

Choose Safari, then preferences and then click security. You should then be able to specify if and when Safari should accept cookies.

To manage cookies on your mobile phone please consult your manual or handbook.

Get more help about how cookies work with specific browsers.

What happens if I don't accept cookies?

If you decline cookies, some aspects of Invest Europe site may not work on your computer or mobile phone and you may not be able to access areas you want on the website. For this reason we recommend that you accept cookies.

What happens if I delete my cookies?

If you delete all your cookies you will have to update your preferences with us again and some aspects of our site may not work.

What happens if I change computers or mobile?

If you use a different device, computer profile or browser you will have to tell us your preferences again.

If you'd like to learn more about cookies in general and how to manage them, visit

We can't be responsible for the content of external websites.

Opt-out of cookies


Join today

This is for members only. To view in full login or join Invest Europe today.