February 05, 2019

EIOPA published its updated work program for 2019. The work program highlights and specifies the activities and tasks of EIOPA for the coming year, within the framework of a multi-annual work program for 2019–2021. The strategic objectives include driving forward conduct of business regulation and supervision, leading convergence toward high-quality prudential supervision throughout the EU, and strengthening the financial stability of the insurance and occupational pensions sectors.

One of the high-priority focus areas of EIOPA for 2019 is to promote supervisory convergence in the area of insurtech. This involves facilitating a level playing field throughout Europe based on the principle of proportionality and pursing a technology-neutral approach to financial innovation. In this area, EIOPA has set the following priorities for 2019:

  • Fragmentation of the value chain and impact on business models—It is necessary for supervisors to understand the (new) modus operandi for both incumbents and start-ups, together with the impact and change of business 34 modes to provide appropriate risk-based supervision. As part of this process, the understanding of new evolving business models is particularly important.
  • Big Data—A priority because of the potential detriment to consumers when pricing is done using non-risk-based data raising potential ethical issues.
  • Cyber risks—An area of growing implications in terms of both opportunities and risks to industry and consumers alike.

In terms of prudential supervision, EIOPA has the following key priorities for 2019:

  • Further development of the regulation and eventually authorization of Pan-European Personal Pension, or PEPP, (Commissions legislative proposal)—Several areas of the regulation of PEPP, for example, regarding the default investment option and transparency about the product deserve further guidance to promote the design of appropriate PEPPs.
  • Preparing the ground for EIOPA’s Opinion, due in 2020, on the Long-Term Guarantee (LTG) Measures—On the basis of robust evidence on their effectiveness, testing ideas for improvement and considering impact on existing regulation.
  • Further refinement of the International Capital Standard (ICS) 2.0 as reference ICS and starting confidential reporting to international colleges—After the decision of IAIS announcing a unified path to convergence of group capital standards in furtherance of its ultimate goal of a single ICS that achieves comparable outcomes across jurisdictions, implementation work will start to be performed.
  • Achieving proportionate and relevant application of Institutions for Occupational Retirement Provision (IORP) II throughout Europe—By applying IORP II, the national supervision of IORPs is enabled to reach deeper analysis and a multi-faceted approach to assessing the sustainability of IORPs. This is further supported by sophisticated studies based on a broader set of relevant pensions data.
  • Completion of a European Single Rulebook—Supervisory convergence can only be achieved against a harmonized set of rules, ensuring a relative standardized approach, implementation, and practices across Europe.


Related Links

Keywords: Europe, EU, Insurance, Work Program, Insurtech, ICS, IORP, Long Term Guarantee, PEPP, EIOPA

Related Articles
News

HKMA Revises Implementation Schedule for Initial Margin Rules

HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

August 16, 2019 WebPage Regulatory News
News

FASB Proposes to Extend CECL Standard Deadline for Certain Entities

FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

August 15, 2019 WebPage Regulatory News
News

IASB Adds Phase Two of IBOR Reform to Its Work Plan

IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

August 15, 2019 WebPage Regulatory News
News

FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

August 15, 2019 WebPage Regulatory News
News

APRA Applies Additional Capital Requirement for an Australian Insurer

APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer.

August 14, 2019 WebPage Regulatory News
News

APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

August 14, 2019 WebPage Regulatory News
News

BCBS FAQs on Implementation of Operational Risk Capital Requirements

BCBS published the first set of frequently asked questions (FAQs) to facilitate consistent global implementation of the standardized approach for operational risk capital.

August 14, 2019 WebPage Regulatory News
News

MAS Publishes Rules on Single Counterparty Credit Limits for Banks

MAS published Notice 656 on rules to measure and limit exposures to a single counterparty group for banks incorporated in Singapore.

August 14, 2019 WebPage Regulatory News
News

BoE Publishes Actual and Indicative MREL for Banks in UK

BoE published actual and indicative minimum requirements for own funds and eligible liabilities (MRELs) for UK banks and buildings societies that have bail-in or partial transfer resolution strategies.

August 14, 2019 WebPage Regulatory News
News

OSFI Sets Out Plans for Implementation of Insurance Contracts Standard

OSFI published a letter that provides an update on the milestones completed and the activities underway with respect to the implementation of the insurance contracts standard International Financial Reporting Standard (IFRS) 17.

August 13, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3638