EIOPA issued a statement to insurers and intermediaries, urging them to take steps to mitigate the impact of COVID-19 on consumers. These steps include providing clear and timely information to consumers, keeping consumers informed about contingency measures taken, continuing to apply product oversight and governance requirements, and exercising flexibility in the treatment of consumers where practical. Additionally, in view of COVID-19, the Romanian Supervisory Authority and EIOPA decided to postpone the start of the Balance Sheet Review of the Romanian insurance sector. The exercise was originally expected to be performed in the second semester of the year 2020.
EIOPA welcomes the initiatives already taken by insurers and intermediaries to support and assist consumers, along with the consideration being shown toward consumers affected by COVID-19, including those who are particularly vulnerable. It is critical that insurers and intermediaries continue focusing on ensuring business continuity and the fair treatment of consumers. While highlighting the need for flexibility in the interest of consumers and for their continued fair treatment, EIOPA also highlights that imposing retroactive coverage of claims not envisaged within contracts could create material solvency risks and ultimately threaten policyholder protection. EIOPA expects all market participants to continue to act in the best interests of consumers, throughout the life cycle of their relationship with the consumer. This is in line with the requirements on policyholder protection set out in relevant legislation such as the Insurance Distribution Directive (2016/97) and the Solvency II Directive (2009/138/EC). This call to action follows the publication of a statement on actions to mitigate the impact of COVID-19 on the EU insurance sector and also follows the recommendations on supervisory flexibility regarding deadlines of supervisory reporting and public disclosure by insurers.
Keywords: Europe, EU, Insurance, COVID-19, Business Continuity, Systemic Risk, Solvency II, Insurance Distribution Directive, Balance Sheet Review, Romania, EIOPA
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Previous ArticleBCBS Publishes Basel III Monitoring Updates in April 2020
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.