The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy. EIOPA also published its guidance on integrating the customer’s sustainability preferences in the suitability assessment under the Insurance Distribution Directive (IDD).
Solvency II DPM and XBRL taxonomy
The EIOPA Solvency II DPM and XBRL taxonomy package version 2.8.0 contains release notes, DPM documentation, DPM dictionary, Solvency II annotated templates, detailed change logs from earlier versions, list of validations, Solvency II XBRL taxonomy, and XBRL taxonomy documentation and filing rules. The taxonomy package release 2.8.0 is provided to be used from the December 31, 2023 until a new version is announced. This taxonomy release 2.8.0 has been published without validations (that is templates and instructions are final). The final release of version 2.8.0 with validations and modeling will be published in January 2023 (hotfix is expected in March 2023).
Guidance on Integrating Sustainability Preferences
The guidance is based on Commission Delegated Regulation (EU) 2021/1257 and aims at easing the implementation of the Delegated Regulation by national competent authorities as well as by insurance undertakings and insurance intermediaries providing advice on insurance-based investment products. Commission Delegated Regulation (EU) 2021/1257 requires insurers and insurance intermediaries to integrate the customer’s sustainability preferences into the sales process when they provide advice on insurance-based investment products. The guidance will apply from August 02, 2022. EIOPA provides guidance on:
- how to help customers better understand the concept of “sustainability preferences” and their investment choices
- how to collect information on sustainability preferences from customers
- how to match customer preferences with products, based on product disclosures under the Sustainable Finance Disclosure Regulation (SFDR)
- what arrangements are necessary to ensure the suitability of an insurance-based investment product
- the sustainable finance-related training and competence expected of insurance intermediaries and insurance undertakings who provide advice on insurance-based investment products
The guidance is complemented by a feedback statement, which addresses the comments received from stakeholders in a public consultation on draft guidelines on integrating the customer’s sustainability preferences earlier this year. After the consultation, EIOPA decided to pause its work on guidelines on the topic of sustainability preferences in order to gather more information based on the implementation experience with the new legislative framework in the coming months.
- Notification on Solvency II DPM and XBRL Taxonomy
- Release Notes on Solvency II Taxonomy (PDF)
- Press Release on Guidance on Integrating Sustainability Preferences
- Guidance on Integrating Sustainability Preferences (PDF)
Keywords: Europe, EU, Insurance, Reinsurance, Reporting, Solvency II, DPM, XBRL Taxonomy, Taxonomy, Insurance Based Investment Products, IDD, Suitability Assessment, SFDR, ESG, EIOPA
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
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