Featured Product

    EIOPA Reports 2018 Supervisory Activities and Sets Out 2019 Priorities

    April 26, 2019

    EIOPA published its 2018 supervisory activities report, in accordance with Article 259 of the Solvency II Directive. The report provides an overview of the supervisory activities of EIOPA in 2018, in addition to outlining the progress made and challenges faced in achieving supervisory convergence across member states. The priorities for 2018 remain; however, new activities and milestones have been identified for each priority area.

    New supervisory activities include work on conduct of business supervisory practices under the Supervisory Handbook, analysis of the consistency of technical provisions best estimate calculation, analysis of the supervision of run-off undertakings, and the promotion of supervisory convergence in the European pensions sector regarding the implementation of Institutions for occupational retirement provision (IORPs) II. The focus on cross-border activities will involve ongoing monitoring of the market to detect, handle, and follow-up on identified risks including developing data related aspects and in preemptively identifying prudential and conduct related issues; the focus also includes emphasis on cross-border activities, both for standard formula and internal model undertakings, via the colleges, bilateral engagements with group supervisors, and cooperation platforms.

    Another focus area will be on developing good practices on the ongoing supervision of validation standards and assessing whether and how solvency capital reporting requirements could be improved, to lay the foundation for future internal model ongoing appropriateness indicators. EIOPA will perform assessment of internal model outcomes, via comparative studies on the outcomes of internal models regarding underwriting risks (for main non-life lines of business) and market and credit risks, with an analysis of potential model drifts over time. Toward ensuring a level playing field and avoiding supervisory arbitrage, EIOPA plans to analyze the consistency of the treatment of risk-mitigation techniques and of other financial instruments that may be used to reduce Solvency Capital Requirements

    In the area of supervisory assessment of conduct risk, EIOPA will work on the conduct of business chapters for the Supervisory Handbook—namely on (in this order) supervision of product oversight and governance requirements; further guidance on how to implement risk-based conduct of business supervision; and supervision of the implementation the packaged retail insurance-based investment product key information document (PRIIPs KID). With respect to the supervision of emerging risks, EOIPA will work to:

    • Develop good practices on the supervision of data management, data quality, and IT security governance
    • Promote awareness and perform first steps toward the implementation of a cyber resilience framework
    • Develop guidelines on information and communication technology (ICT) security and governance
    • Promote pilot discussions regarding cyber resilience testing for large insurers
    • Conduct thematic review on big data analytics
    • Ensure a high-level of supervisory standards with the EU27, while establishing a new relationship with the UK under the revised terms; EIOPA will monitor any stability issues in the run up to and following the exit of the UK from the EU, including during any transitional period
    • Assess the impact of IBOR transition in insurance and reinsurance undertakings from different perspectives, including impact on the Risk Free Rate methodology

    The publication of this report followed the publication of the booklet on Common Supervisory Culture in November 2017 and the Supervisory Convergence Plan for 2018-2019 in April 2018. These documents set out the approach of EIOPA to supervisory convergence—by building common benchmarks for supervisory practices, reviewing the practices, and conducting its own independent assessment.

     

    Related Links

    Keywords: Europe, EU, Insurance, Solvency II, Supervisory Priorities, Internal Model, Insurtech, Cyber Risk, IBOR, Reporting, PRIIPs, KID, EIOPA

    Featured Experts
    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Approach for Regulating Key Aspects of PEPP

    EIOPA launched a consultation on the proposed approaches and considerations for its technical advice and its implementing and regulatory technical standards, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation.

    December 02, 2019 WebPage Regulatory News
    News

    ESMA Issues Guidance for Registration of Securitization Repositories

    ESMA published a guidance note on the process for registering securitization repositories under the Securitization Regulation.

    December 02, 2019 WebPage Regulatory News
    News

    European Council Appoints New Commission With Effect from December 01

    European Council appointed the new Commission for the period from December 01, 2019 to October 31, 2024.

    December 02, 2019 WebPage Regulatory News
    News

    BoE Governor Appointed as UN Envoy for Climate Action and Finance

    BoE Governor Mark Carney has been appointed as the United Nations (UN) Special Envoy for Climate Action and Finance.

    December 01, 2019 WebPage Regulatory News
    News

    PRA Publishes Annual List of G-SIIs and O-SIIs

    PRA released the annual list of UK firms designated as other systemically important institutions (O-SIIs), along with the 2019 list of UK-headquartered global systemically important institutions (G-SIIs).

    November 29, 2019 WebPage Regulatory News
    News

    EBA Publishes Report on Risks and Vulnerabilities in EU Banking Sector

    EBA published its annual report on risks and vulnerabilities in the EU banking sector.

    November 29, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4250