Last week, the European Insurance and Occupational Pensions Authority (EIOPA) launched its work on the review of Solvency II with a Discussion Paper on the Solvency Capital Requirement (SCR) Standard Formula. The Discussion Paper is the first step for EIOPA in its response to the European Commission Call for Advice issued earlier this year, with EIOPA noting that it does not yet propose any policy options. Overall, EIOPA is seeking to ensure a proportionate simplification of the Standard Formula and sets out key areas for potential review including the simplification of aspects of the SCR calculation and the appropriateness of the current risk margin (a fixed 6% cost of capital). There is no specific mention of the capital calibrations for different investment asset classes such as the other equity bucket, nonetheless, the Solvency II review could provide a platform to seek the recalibration of these capital metrics. The  deadline for responses is 3 March 2017, with subsequent consultations to be published during 2017. If you have any questions or would like to join an AIMA Solvency II Working Group, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.