Featured Product

    EIOPA on Supervisory Practices for Cross-Border Activities of Insurers

    December 08, 2020

    EIOPA published the results of a peer review on the EIOPA Decision on the collaboration between authorities in EU on the supervision of cross-border activities of insurance undertakings. The peer review focuses on how national supervisory authorities approach insurance cross-border activities, how they exchange supervisory information and collaborate, how data is stored, and practices regarding portfolio transfers. Following the assessment, EIOPA has set out 60 recommended actions and four best practices for the national supervisory authorities. EIOPA plans to closely monitor the implementation of the recommendations and will also follow-up with own specific actions. EIOPA issue updates and clarifications to also reflect recent amendments in the Solvency II Directive and proposals for the Solvency II 2020 Review in the Decision.

    The recommendations are focused on closing the gaps that may have a negative impact on the effectiveness of the supervisory process and are necessary to further improve cooperation among national supervisory authorities. The recommendations address those main areas: 

    • Information needed in case of authorization of a new undertaking in case of previous authorizations sought in other member states or where the applicant intends to operate exclusively (or almost exclusively) in another member state
    • Information exchange and procedures in case of notification process for activities such as freedom of establishment and freedom to provide services
    • Improvements and updates of the data storage tools aiming to keep readily available all necessary information to share with other authorities concerning cross-border activity

    Increased cross-border activity in the EU internal market makes the EIOPA Decision on the collaboration of the insurance supervisory authorities a fundamental tool for reinforcing collaboration and building a common European supervisory culture. In this peer review, EIOPA has analyzed legal and regulatory frameworks and national supervisory practices across 32 national supervisory authorities  with regard to the application of the Decision. Differences in national supervisory authorities’ approaches and practices in this area were found, and as a result, EIOPA issued a high number of recommended actions (60 recommended actions to 26 national supervisory authorities  with the aim of achieving greater supervisory convergence.  EIOPA identified several best practices in relation to four aspects of the collaboration that are being applied by national supervisory authorities. These practices are related to effective implementation of the Decision, the notification processes, and ongoing supervision divided into informal regular information exchange between authorities and supervisory activities to support the ongoing supervision.

    The national supervisory authorities are expected to implement the recommended actions by the fourth quarter of 2022. EIOPA will take the follow-up actions starting in 2021 and 2022. Regarding the follow-up, starting by the end of 2022, EIOPA will, in line with the EIOPA Regulation, assess how national supervisory authorities have implemented the recommended actions. EIOPA will in its assessment take into account the way national supervisory authorities have implemented improvements after the reference period, as an immediate response to the peer review or to the issued recommended actions.

     

    Related Links

    Keywords: Europe, EU, Insurance, Solvency II, Cross-Border Cooperation, National Supervision, Solvency II Review, EIOPA

    Featured Experts
    Related Articles
    News

    NGFS Seeks Public Feedback on Climate Risk Assessment Scenarios

    The Network for Greening the Financial System (NGFS) launched its first user feedback survey on climate scenarios, with the feedback period ending on February 27, 2023.

    February 06, 2023 WebPage Regulatory News
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    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.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    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.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    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.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    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.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8702