(1) As Solvency II celebrates its fifth anniversary, the European Commission is moving forward with a review of the system that will shape its operation over the coming years. A new report by AM Best, "A Very Particular Regime EIOPA's Solvency II Review Advice," examines some of the Solvency II reform proposals put forward by the European Insurance and Occupational Pensions Authority (EIOPA) and outlines the implications for European insurance companies. As the commission moves forward with changes to Solvency II, AM Best expects one of the issues under the spotlight will be the discount rates used at long durations. AM Best highlights in the report that EIOPA's proposals make a start in reforming the often-uneconomic nature of these discount rates. Insurers use rates derived from an Ultimate Forward Rate set by regulation. EIOPA's proposals to lower discount rates are expected to have a clearly visible impact in reducing available capital under Solvency II, most particularly for life insurers in Germany and the Netherlands.