EIOPA published an opinion on the harmonization of the recovery and resolution framework for insurers and reinsurers across the EU. This opinion is addressed to the European Parliament, the Council of the EU, and the EC.
EIOPA calls for a minimum degree of harmonization in the field of recovery and resolution for insurers and reinsurers. Harmonization of the existing frameworks and the definition of a common approach to the fundamental elements of recovery and resolution will avoid the current fragmented landscape and facilitate cross-border cooperation. To achieve the objective to increase policyholder protection and financial stability in the EU, EIOPA proposed the following four building blocks where the definition of a common approach is key:
Preparation and planning
Cross-border cooperation and coordination
The harmonized recovery and resolution framework should cover all insurers and reinsurers subject to the Solvency II framework and should be applied proportionately. The proportionality principle should guide and allow member states to waive certain requirements of the framework such as developing and maintaining pre-emptive recovery and resolution plans for specific insurers. In the coming years, EIOPA will monitor the progress made in the field of recovery and resolution in Member States.
Related Link: EIOPA Opinion (PDF)
Keywords: Europe, EIOPA, Insurance, Solvency II, Recovery and Resolution Framework, Opinion
Previous ArticlePRA Proposes Changes to Reporting Requirements for Insurers
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.
ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).
EBA published revised guidelines on major incident reporting under the Payment Service Directive (PSD2).
BCBS updated the year-end and annual average exchange rates in context of the global systemically important bank (G-SIB) assessment exercise.
HKMA issued a circular informing the industry about its intention to revise the target effective dates for the revised frameworks on credit risk, operational risk, output floor, leverage ratio, market risk, and credit valuation adjustment risk.