December 18, 2017

EIOPA published a supervisory statement based on an analysis of the first Solvency and Financial Condition Reports (SFCRs) of (re)insurance undertakings and insurance groups. The analysis shows that the majority of reports were published on time and, in general, complied with the Solvency II requirements. Most reports were easily accessible on the websites of the undertakings.

The analysis is based on a sample of publicly disclosed 2016 SFCRs published by (re)insurance undertakings and insurance groups in the European Economic Area. However, EIOPA identified the following areas that require further improvements regarding the quality of the content:

  • A more fit-for-purpose summary
  • Undertaking/group-specific information about the own-risk and solvency assessment (ORSA)
  • Better structured and more comprehensive information on risk-sensitivity to different scenarios or stresses
  • More relevant information on bases, methods, and main assumptions used for the valuation of assets, liabilities, and technical provisions and addressing the uncertainties around valuation
  • More comprehensive information of eligible own funds

EIOPA encourages (re)insurance undertakings and insurance groups to take into account the recommendations outlined in the supervisory statement, considering the principle of proportionality, in the preparation of future reports. For the first time, the next year's (2018) reports require the provision of the comparative information. Therefore, EIOPA outlined its expectations for the mandatory areas and how this information should be presented in the reports. The aim of the statement is to improve future disclosure of these reports.

 

Related Link: News Release

Keywords: Europe, EU, Insurance, Solvency II, SFCR, ORSA, EIOPA

Related Articles
News

EC Amends Regulation Supplementing Solvency II Directive

EC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance.

June 18, 2019 WebPage Regulatory News
News

IOSCO Report Examines Application of International Cyber Standards

IOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions.

June 18, 2019 WebPage Regulatory News
News

PRA Launches 2019 Stress Test Exercise for Life and General Insurers

PRA has launched the biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business.

June 18, 2019 WebPage Regulatory News
News

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.

June 17, 2019 WebPage Regulatory News
News

FSB Assesses Implementation of Compensation Standards and Principles

FSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.

June 17, 2019 WebPage Regulatory News
News

IMF Publishes Reports on 2019 Article IV Consultation with Ireland

IMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.

June 17, 2019 WebPage Regulatory News
News

EBA Updates Data on Deposit Guarantee Schemes in EU

EBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.

June 17, 2019 WebPage Regulatory News
News

SNB Updates Form for Reporting Solvency Risk of Counterparties

SNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).

June 17, 2019 WebPage Regulatory News
News

ISDA Studies Variation in Global Implementation of Margin Requirements

ISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.

June 17, 2019 WebPage Regulatory News
News

US Agencies Finalize Rule to Streamline Reporting for Small Banks

US Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.

June 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3265