EIOPA Consults on Reporting and Disclosures Under Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation. The supervisory statement covers the authorization of acquisition of run-off undertakings or portfolio, the ongoing supervision, and the prudential and conduct of business issues. In another development, EIOPA proposed amendments and corrections to the implementing technical standards on supervisory reporting and disclosure requirements under Solvency II. This proposal concerns amendments to the implementing technical standards on disclosure and reporting as well as to the guidelines on the supervision of branches of third country insurance undertakings and guidelines on reporting for Financial Stability Purposes. The feedback period for both the consultations ends on October 17, 2021.
EIOPA proposed changes to the reporting requirements that are mainly based on the report on quantitative reporting templates published along with the 2020 Solvency II Opinion. In addition to these changes, the proposals include simplification of quarterly reporting for all undertakings, elimination of certain reporting templates for all undertakings, and new thresholds to promote better risk-based and proportionate reporting requirements. The consultation addresses reporting requirements with respect to climate change risks, internal models, third-country branches, Solvency Capital, group reporting, loss-absorbing capacity of deferred taxes, and look-through approach for collective investment undertakings, EIOPA proposals on the review of the reporting requirements should bring several benefits that will ultimately lead to a better protection of policyholders, including reduction of reporting costs for the majority of insurance undertakings and inclusion of information needed for supervisory purposes (focusing on emerging risks and new areas for which supervisors identified a number of data gaps). Another expected benefit is a more fit-for-purpose reporting—for example, reducing and simplifying when possible but also accommodating gaps identified by supervisors. EIOPA will consider the responses it receives to this consultation before finalizing the implementing technical standards on reporting and disclosure and the associated guideline documents. The draft amendments and corrections will then be submitted to the European Commission for endorsement. All amendments will be incorporated in the XBRL taxonomy version 2.7.0 and are expected to be applicable for end-2022 reporting. The consultation of the 2.7.0 taxonomy release will not follow the usual calendar (PWD on June 01 and final taxonomy on July 15) but will instead be consulted on as soon as possible after the delivery of the draft implementing technical standards to allow industry more preparation time.
Related Links
- Press Release on Run-Off Undertakings
- Consultation on Run-Off Undertakings (PDF)
- Press Release on Reporting and Disclosure
- Consultation on Reporting and Disclosure (PDF)
- Proposed Implementing Standards (ZIP)
- Loss Absorbing Capacity Templates (XLSX)
Comment Due Date: October 17, 2021
Keywords: Europe, EU, Insurance, Solvency II, Reporting, Climate Change Risk, Internal Models, ESG, Implementing Technical Standards, Disclosures, Run-Off Undertakings, Sustainable Finance, EIOPA
Featured Experts
Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist
Jerome Ogrodzki
Insurance asset and liabilities modeling specialist; stochastic modeling expert
Brian Robinson
Actuary; risk management specialist; corporate and capital modelling expert
Previous Article
EC to Defer Application of SFDR Standards Till July 2022Related Articles
APRA Issues Interim Update to Policy Priorities for 2021 and Beyond
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
EC Adopts Solvency II and Resolution Rules Package for Insurers
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
OCC Issues Booklets on Regulatory Reporting and Earnings
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
ECB Sets Out Results of Economy-Wide Climate Stress Tests
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
EBA Examines Implications of Increasing Use of Digital Platforms in EU
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
HKMA Issues Updates on Policy Measures Intended to Ease COVID Impact
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
ISDA Responds to BCBS Proposal on Treatment of Cryptoasset Exposures
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS Quarterly Review Discusses Developments in Fintech and ESG Space
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
BCBS to Consult on Supervisory Practices for Climate Risks by Year-End
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
OCC Identifies Operational Risk Deficiencies in MUFG Union Bank
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
