EIOPA published the results of a peer review on the EIOPA Decision on the collaboration between authorities in EU on the supervision of cross-border activities of insurance undertakings. The peer review focuses on how national supervisory authorities approach insurance cross-border activities, how they exchange supervisory information and collaborate, how data is stored, and practices regarding portfolio transfers. Following the assessment, EIOPA has set out 60 recommended actions and four best practices for the national supervisory authorities. EIOPA plans to closely monitor the implementation of the recommendations and will also follow-up with own specific actions. EIOPA issue updates and clarifications to also reflect recent amendments in the Solvency II Directive and proposals for the Solvency II 2020 Review in the Decision.
The recommendations are focused on closing the gaps that may have a negative impact on the effectiveness of the supervisory process and are necessary to further improve cooperation among national supervisory authorities. The recommendations address those main areas:
- Information needed in case of authorization of a new undertaking in case of previous authorizations sought in other member states or where the applicant intends to operate exclusively (or almost exclusively) in another member state
- Information exchange and procedures in case of notification process for activities such as freedom of establishment and freedom to provide services
- Improvements and updates of the data storage tools aiming to keep readily available all necessary information to share with other authorities concerning cross-border activity
Increased cross-border activity in the EU internal market makes the EIOPA Decision on the collaboration of the insurance supervisory authorities a fundamental tool for reinforcing collaboration and building a common European supervisory culture. In this peer review, EIOPA has analyzed legal and regulatory frameworks and national supervisory practices across 32 national supervisory authorities with regard to the application of the Decision. Differences in national supervisory authorities’ approaches and practices in this area were found, and as a result, EIOPA issued a high number of recommended actions (60 recommended actions to 26 national supervisory authorities with the aim of achieving greater supervisory convergence. EIOPA identified several best practices in relation to four aspects of the collaboration that are being applied by national supervisory authorities. These practices are related to effective implementation of the Decision, the notification processes, and ongoing supervision divided into informal regular information exchange between authorities and supervisory activities to support the ongoing supervision.
The national supervisory authorities are expected to implement the recommended actions by the fourth quarter of 2022. EIOPA will take the follow-up actions starting in 2021 and 2022. Regarding the follow-up, starting by the end of 2022, EIOPA will, in line with the EIOPA Regulation, assess how national supervisory authorities have implemented the recommended actions. EIOPA will in its assessment take into account the way national supervisory authorities have implemented improvements after the reference period, as an immediate response to the peer review or to the issued recommended actions.
Keywords: Europe, EU, Insurance, Solvency II, Cross-Border Cooperation, National Supervision, Solvency II Review, EIOPA
Previous ArticleEBA Issues Further Clarifications as End of Brexit Transition Nears
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.