Featured Product

    EIOPA Publishes Report on LTG Measures and Measures on Equity Risk

    December 21, 2017

    EIOPA published its second annual report 2017 on Long-Term Guarantee (LTG) measures and measures on equity risk. This report analyzes the impact of measures on the financial position of all (re)insurance undertakings from the European Economic Area. The analysis included the impact of the extrapolation of risk-free interest rates and of the symmetric adjustment mechanism to the equity risk charge. The Solvency II Directive requires a review of the LTG measures and the measures on equity risk by January 01, 2021.

    The annual report contains four main sections. The first section provides introductory information on the legal background of the review of the LTG measures and measures on equity risk as well as on the data used for this report, also concluding with a summary on the European insurance market. The second section captures the overall impact of the LTG measures and measures on equity risk on the financial position of the undertakings; the impact on policyholder protection; the impact on investments; the impact on consumer protection and availability of products; the impact on competition and level playing field in the EU insurance market; and the impact on financial stability. The third section of the report details the impact of each measure. The fourth section (thematic focus) is focused on the public disclosure on LTG measures and measures on equity risk. 

    EIOPA also assessed stakeholder perception about the relevance, comprehensibility, completeness, and comparability of the information on the measures disclosed by (re)insurance undertakings. The outcome highlights the importance of the transparency on the use and impact of the measures as well as their preference for disclosure of additional information. EIOPA plans to submit an opinion on the assessment of the application of the LTG measures and the measures on equity risk to EC in 2020, which will be based on the annual reports submitted by then. EIOPA has submitted this second annual report to the European Parliament, the Council of the European Union, and the EC. 

     

    Related Links

    Keywords: Europe, Insurance, Solvency II, LTG, Equity Risk, Annual Report, EIOPA

    Featured Experts
    Related Articles
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    FDIC Letter on Submission of Call Reports by End of January 2020

    FDIC, in a letter to financial institutions, announced that the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2019 report date must be submitted to the Central Data Repository of the relevant US agencies by January 30, 2020.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Consults on Calculation of Own Funds Requirements for Market Risk

    EBA is consulting on the draft regulatory technical standards for calculation of the own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4489