Featured Product

    EIOPA Consults on Reporting and Disclosures Under Solvency II Review

    July 12, 2019

    EIOPA launched a consultation package on supervisory reporting and public disclosure in the context of its work linked with the 2020 Solvency II review. This consultation package deals with supervisory reporting and public disclosure issues that the supervisors and industry have raised over the last three years and proposes amendments where adequate. The consultation period ends on October 18, 2019. A second wave of public consultation will occur later in the year and will complement the current consultation.

    EIOPA received, on February 11, 2019, the Call for Advice of EC on the review of Solvency II Directive. EIOPA will respond to the Call for Advice in the form of a Solvency II Opinion, which will include a holistic impact assessment. This Solvency II Opinion will be published for consultation in the fourth quarter of 2019. This consultation paper is a draft response to the Call for Advice item 3.15 on reporting and disclosure. The advice in this paper will be amended with the input of this consultation process and will be included in the Solvency II Opinion to be submitted to EC. EIOPA will consult on the review of the supervisory reporting and public disclosure in two waves. The first wave covers the areas included in this public consultation. These areas are covered by specific consultation papers, with each covering a separate impact assessment. The following areas are covered in this consultation paper:

    • General issues on supervisory reporting and public disclosure (EIOPA-BoS-019-300)
    • Individual Quantitative Reporting Templates (EIOPA-BoS-019- 305) and Annexes (EIOPA-BoS-019-330 to 357)
    • Solvency and Financial Condition Report and Narrative Supervisory Reporting (EIOPA-BoS-019-309)
    • Financial Stability Reporting (EIOPA-BoS-019-306)

    The EIOPA proposals involve the following key issues:

    • Keep deadlines for quarterly reporting but extend the deadline for annual reporting by two weeks
    • Increased proportionality by dividing templates into two categories, core and non-core with risk-based thresholds different for annual or quarterly submissions. The risk-based threshold shall reflect the nature, scale, and complexity of the risk exposure of the risk area covered by each template
    • Deletion and simplification of a number of Quantitative Reporting Templates both for quarterly and annually reporting
    • Harmonization of templates on cross-border information—one template enlarged, which replaces three other templates and templates on Solvency Capital Requirement templates, including now internal models reporting
    • Creation of new templates to incorporate new information such as on cyber risks and product-by-product information for non-life business
    • Revision of templates such as the look-through approach for collective investment funds and the variation analysis
    • Improved structure of the Solvency and Financial Condition Report, with dedicated sections for policyholders and the professional public
    • For pure captives' undertakings, simplifications of annual reporting and partial exemption from the SFCR

    Later in the year, along with other areas of the Solvency II 2020 review, EIOPA will consult on additional areas of supervisory reporting and public disclosure and these areas involve Group Quantitative Reporting Templates, regular supervisory reporting, technical aspects of the reporting and disclosure processes, data quality aspects, and reporting and disclosure issues linked to other areas of the Solvency II 2020 review, particularly the Long-Term Guarantee templates. During the consultation, EIOPA will also organize a voluntary field testing of the new templates on cyber risk, variation analysis, product-by-product information for non-life, cross-border business, and internal model reporting. The result of both consultations will be included in the EIOPA Opinion to be submitted to EC by June 2020. After June 2020, some of the proposals will need to be considered by EC and eventually reflected in a Directive and/or Delegated Regulation amendments, such as the proposals on the public disclosure or narrative reporting. However, other proposals, such as deletion of some templates and new information to be requested could be reflected in the implementing technical standards without the need for any legislative amendment.

     

    Related Links

    Comment Due Date: October 18, 2019

    Keywords: Europe, EU, Insurance, Solvency II, Reporting, Disclosures, SFCR, Quantitative Reporting Templates, Financial Stability Reporting, Cyber Risk, Proportionality, EIOPA

    Featured Experts
    Related Articles
    News

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469