EIOPA published the third annual report on the use of exemptions and limitations from the regular supervisory reporting in 2017 and the first quarter of 2018 by national competent authorities under Solvency II. The report describes the data sources used for the analysis and examines the process for granting limitations and/or exemptions from reporting templates, the quarterly exemptions for solo undertakings, the proportionality principle in quarterly reporting, and the process for granting limitations regarding the reporting of credit rating information.
The report addresses the proportionality principle on reporting requirements, from which the limitations and exemptions on reporting—as foreseen in Article 35 of the Solvency II Directive—are just one of the existing proportionality tools. Reporting requirements also reflect a natural embedded proportionality. In addition, the risk-based thresholds were included in the implementing technical standard on reporting. The quantitative information is obtained from the reporting templates Solvency Capital Requirement (SCR) Own Funds template (S.23.01), Gross Written Premiums (GWP) from the Premiums, claims, and expenses by line of business template (S.05.01), technical provisions from the Balance sheet template (S.02.01), and Total assets from the Balance sheet template (S.02.01).
The report presents two different examples for quarterly templates that give evidence that the different tools used to apply proportionality in reporting complement each other and result in a proportionate and risk-based approach. In the cases presented, only 26% and 23% of the undertakings, for derivatives and look-through templates respectively, reported the templates quarterly. Additionally, the report highlights that about 27% of the undertakings are allowed a limited quarterly reporting, with the market share of such undertakings varying between 0% and 14.6% for non-life Gross Written Premiums and between 0% and 4.5% for life Technical Premiums. At the country level, the top three countries allowing exemptions by number of undertakings are Luxembourg, France, and Norway (with 70%, 67%, and 64%, respectively). However, a different picture emerges when looking at the exemptions in terms of total assets, wherein Liechtenstein ranks highest, followed by Malta and France (with 7.1%, 6.5%, and 5.4%, respectively).
Keywords: Europe, EU, Insurance, Solvency II, Reporting, Limitations and Exemptions, Proportionality, EIOPA
Previous ArticleOCC Report Examines Key Risks for the Federal Banking System
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.
MAS updated rules for new housing loans by banks and finance companies.
HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.