Featured Product

    EIOPA Report on Group Supervision and Capital Management of Insurers

    December 19, 2018

    EIOPA published a report on group supervision and capital management of (re)insurance undertakings and on specific topics related to Freedom to Provide Services (FoS) and Freedom of Establishment (FoE) under the Solvency II Directive (2009/138/EC). Based on the findings presented in the report, EIOPA concludes that the tools developed by EIOPA to strengthen group supervision and supervision of cross-border issues contributed to substantial progress in the convergence of practices of national competent authorities, but significant challenges remain.

    In the report, EIOPA identifies that effective supervision of insurance groups will benefit from a harmonized approach for early intervention, recovery and resolution, the assessment of group own funds, supervisory colleges, and cross-border business activities provided by groups and solo undertakings through FoS and FoE. EIOPA finds a number of gaps in the regulatory framework that lead to divergent supervisory practices in the following:

    • Definition of intra-group transactions
    • Assessment of availability of eligible own funds at group level
    • Treatment of Insurance Holding Companies and Mixed Activity Insurance Holding Companies in the scope of group supervision
    • Inclusion of holding companies, which are not licensed insurance undertakings in the scope of group supervision
    • Adequate application of the combination of methods to calculate the group solvency requirements
    • Referencing from the Solvency II framework to other financial sectors
    • Application of the mutatis mutandis to groups that fall under the scope of the Solvency II framework

    EC is required by Article 242 (2) of the Solvency II Directive to make an assessment of the benefit of enhancing group supervision and capital management under Solvency II. This report is the response to the EC request of June 07, 2018 and is based on the list of specific items that EC identified for the scope of the review.


    Related Links

    Keywords: Europe, EU, Insurance, Solvency II, Recovery and Resolution, Early Intervention Measures, EIOPA

    Featured Experts
    Related Articles

    BIS Paper Outlines Vision for Future Financial System

    In a recent paper, the General Manager of Bank for International Settlements (BIS) and the Indian entrepreneur (Infosys co-founder) Nandan Nilekani have laid out a vision for the Finternet, which is proposed to be a network of multiple financial ecosystems, much like the internet.

    April 29, 2024 WebPage Regulatory News

    NGFS Outlines Options for Supervisory Review of Transition Plans

    The Network for Greening the Financial System (NGFS) recently published three reports on the use of transition plans to boost sustainable finance and manage climate-related financial risks.

    April 29, 2024 WebPage Regulatory News

    BCBS Issues Discussion Paper on Climate Scenario Analysis

    The Basel Committee on Banking Supervision (BCBS) issued a discussion paper on the use of climate scenario analysis to strengthen the management and supervision of climate-related financial risks.

    April 29, 2024 WebPage Regulatory News

    OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.

    April 25, 2024 WebPage Regulatory News

    CFIT to Chair Open Finance Taskforce Announced by UK Government

    The UK government announced the formation of an industry-led Open Finance Taskforce, chaired by the Center for Finance, Innovation, and Technology (CFIT).

    April 25, 2024 WebPage Regulatory News

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8962