EU insurers likely to avoid crypto if 100% Solvency II charge adopted: Fitch
A new report from Fitch Ratings has suggested that EU insurers are likely to keep their exposure to crypto assets minimal if proposals to set the Solvency II risk charge for such assets at 100% are adopted.
According to the rating agency, the European Insurance and Occupational Pensions Authority (EIOPA) recently recommended the capital charge to reflect the “volatility and risks” associated with crypto assets.
“EIOPA’s advice, requested by the European Commission, seeks to ensure prudent treatment of crypto assets within the Solvency II framework. The lack of clear crypto asset classification under Solvency II leads to them being categorised as either intangibles or Type 2 equities (those not listed in regulated EEA or OECD…
