November 08, 2018

EIOPA published four papers resulting from the work of the EU–U.S. Insurance Dialog Project (EU-U.S. Project) in 2018. The EU-U.S. Project began in early 2012, as an initiative by EC, EIOPA, the Federal Insurance Office of the U.S. Department of Treasury (FIO), and NAIC to enhance mutual understanding and cooperation between EU and the United States for the benefit of insurance consumers and effective supervision. In 2018, the EU-U.S. Project focused, and published papers, on cybersecurity risk, cyber insurance market, use of big data, and intra-group transactions (IGTs). These papers will help inform the panel discussions at the EU-U.S. Insurance Project public forum on November 10, 2018 in Luxembourg.

Insurance Industry Cybersecurity Issues Paper. The paper outlines the existing legislative and supervisory frameworks in the EU and the U.S. and describes the selected initiatives and resources for addressing the cybersecurity risk in the insurance industry. The objective is to improve the mutual understanding of EU and U.S. cybersecurity regimes and to enhance supervisory cooperation.

Cyber Insurance Market. The paper describes the cyber insurance market and the types of available cyber insurance coverage. It then outlines challenges in underwriting cyber insurance and highlights the current supervisory practices for assessing cyber insurance underwriting. The paper concludes by offering proposals for future dialog by the Project members.

Big Data Issue Paper. The paper focuses on providing a better understanding on the type, quality, and means of collecting big data and how this data is then used by both insurers and third parties for underwriting, rating, marketing, and claims handling in both the U.S. and the EU. The paper also states how U.S. and EU supervisors are addressing their data needs to appropriately monitor the insurance marketplace and evaluate underwriting, rating, claims, and marketing practices in their respective markets, given the increased use of big data in the marketplace.

Supervision of IGTsIGTs can play an important part in managing risks with strong oversight and financial transactions that help to protect solvency and/or support recovery of undertakings within a group. However, in situations of financial distress, it could be possible for IGTs to increase liquidity risk, operational risk, and/or solvency risk for entities relying on such transactions. In some cases, an inadequate understanding and managing of IGTs could have a more severe impact and can lead to contagion risks between affiliates across the group. The main objectives of the Project’s work on IGTs are to seek mutual understanding about definitions of IGTs and to enhance the understanding of each other’s practices for risk and impact assessment, supervisory review processes, and reporting requirements, in addition to discussing how to further enhance information exchange practices in global supervisory colleges.

 

Related Links

Keywords: Americas, Europe, EU, US, Insurance, EU-US Insurance Dialog Project, Cybersecurity Risk, Cyber Insurance Market, Big Data, IGTs, EIOPA

Related Articles
News

BoE, FCA, and MAS Announce Collaboration on Cyber Security

MAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.

June 13, 2019 WebPage Regulatory News
News

CBIRC Advisory Committee Holds Meeting, Discusses Regulatory Issues

The first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.

June 13, 2019 WebPage Regulatory News
News

APRA Response to Proposal on Revisions to Capital Framework for Banks

APRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.

June 12, 2019 WebPage Regulatory News
News

APRA Finalizes Schedule on Scope of Variable Remuneration Under BEAR

APRA has released a response letter and the final wording of the schedule in relation to how the Banking Executive Accountability Regime (BEAR) applies to variable remuneration arrangements for medium and small authorized deposit-taking institutions (ADIs).

June 12, 2019 WebPage Regulatory News
News

EC Publishes Fourth Progress Report on Reduction of NPLs in EU Banks

EC published the fourth progress report on the reduction of non-performing loans (NPLs) in banks in EU.

June 12, 2019 WebPage Regulatory News
News

FASB Adds Taxonomy Entry Points in Relation to 2019 DEI Taxonomy

FASB has incorporated additional entry points for the 2019 GAAP [Generally Accepted Accounting Principles] Financial Reporting Taxonomy and the 2019 SEC Reporting Taxonomy, in connection with the issuance of the 2019 Document and Entity Information (DEI) Taxonomy by SEC.

June 11, 2019 WebPage Regulatory News
News

EC Publishes Draft Equivalence Decisions for Credit Rating Agencies

EC is requesting feedback on the draft implementing decisions on recognition of legal and supervisory systems of Hong Kong, Japan, Mexico, and U.S. as equivalent to the requirements of Regulation (EC) No 1060/2009 on credit rating agencies.

June 11, 2019 WebPage Regulatory News
News

BaFin Consults on AFS Recommendation to Increase CCyB for Banks

BaFin is requesting feedback on increasing the domestic countercyclical capital buffer (CCyB) to 0.25%, with effect from July 01, 2019, pursuant to Article 92(3) of Capital Requirements Regulation (CRR).

June 11, 2019 WebPage Regulatory News
News

MAS Revises Capital Adequacy Requirements for Banks in Singapore

MAS issued amendments to the Notice 637 on risk-based capital adequacy requirements for banks incorporated in Singapore.

June 10, 2019 WebPage Regulatory News
News

PRA on Modification by Consent of Definition of Capital Rules in CRR 2

PRA announced its decision to offer a modification by consent of the Rules 7.1 and 7.5 of the Definition of Capital Part of the PRA Rulebook.

June 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3238