Featured Product

    EIOPA Report Sets Out 2019 Supervisory Activities and 2020 Priorities

    June 17, 2020

    EIOPA published a report on the supervisory activities in 2019. The report highlights activities and achievements during the year, covering both prudential and conduct of business supervision. The work focused on the priorities identified in the Supervisory Convergence work plan for 2019 as well on issues that emerged during the year. The report also sets out supervisory priorities for 2020. Looking ahead, EIOPA will focus its supervisory work on activities set out in the Supervisory Convergence Plan, which was published in February 2020.

    The report mentions that the work on supervisory convergence developed over the last years played a crucial role during 2019 and will continue in 2020 via the Solvency II 2020 Review. This work allowed the identification of inconsistencies in the implementation of certain Solvency II areas, such as technical provisions, group supervision, application of the proportionality principle, and supervision of captives. This knowledge led in some cases to proposals to amend the Solvency II legislative framework while in others it allowed to identify areas where further work is needed from a supervisory convergence perspective. Both approaches should contribute in the future to a more consistent application of Solvency II. Also in the context of Solvency II, EIOPA published a supervisory statement on the application of the proportionality principle in the supervision of the Solvency Capital Requirement. 

    EIOPA delivered a peer review on the Regular Supervisory Report and the use of proportionality principle for setting its frequency which will feed the work under development under the Solvency II 2020 review, in particular the application of the proportionality principle. EIOPA also published the key findings of its thematic review on the use of Big Data Analytics in motor and health insurance. The report highlighted that, in 2020, EIOPA will continue to assess supervisory practices in general and on a thematic basis. EIOPA will support the supervisory capacity of national competent authorities and supervisory convergence, focus on cross-border and third country activities, and further investigate possible conduct risks. The priorities for 2020 include the following:

    • Focused bilateral engagements with national competent authorities, including dedicated internal model visits
    • Technical support to national competent authorities, including conduct oversight capacity, such as under the umbrella of the EC Structural Reform Support Service
    • Ongoing monitoring of the market to detect, handle, and follow-up identified risks, including developing data-related aspects, and to preemptively identify prudential and conduct-related issues (For conduct issues, EIOPA is expected to focus on the four priority conduct risks identified in 2019.)
    • Emphasis on cross-border activities, via the colleges, bilateral engagements with group supervisors, specific cooperation platforms and any other form of collaboration, where appropriate via joint onsite inspections
    • Continued engagement with national competent authorities to further understand and, where relevant, address conduct risks in the European unit-linked market, including supervisory thematic platform, laying basis for extensive future work

     

    Related Links

    Keywords: Europe, EU, Insurance, Solvency II, SCR, Big Data, Supervisory Activities, Supervisory Priorities, Proportionality, Solvency II Review, Supervisory Convergence, EIOPA

    Featured Experts
    Related Articles
    News

    PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK

    PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.

    April 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Standards on Methods of Prudential Consolidation

    EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).

    April 15, 2021 WebPage Regulatory News
    News

    EBA Updates List of Other Systemically Important Institutions in EU

    EBA updated the list of other systemically important institutions (O-SIIs) in EU.

    April 15, 2021 WebPage Regulatory News
    News

    BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks

    BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.

    April 14, 2021 WebPage Regulatory News
    News

    UK Authorities Welcome FSB Review of their Remuneration Regime

    UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.

    April 14, 2021 WebPage Regulatory News
    News

    PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators

    PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.

    April 14, 2021 WebPage Regulatory News
    News

    MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5

    MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.

    April 14, 2021 WebPage Regulatory News
    News

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Proposes to Enhance Assurance Expectations for Basel Returns

    OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.

    April 13, 2021 WebPage Regulatory News
    News

    ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks

    ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.

    April 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6858