EIOPA published its Mediation Opinion on the determination of the correct insurance class for the insurance policy known as statutory risks in France. The Mediation Panel of EIOPA involved the ACPR as host authority and the Central Bank of Ireland as home authority of the insurance undertakings that offer this policy on the freedom to provide services in France.
In line with the risk-based approach of Solvency II and with the aim to promote consistent supervisory practices, the Mediation Panel concluded that the determination of the insurance class should reflect the nature of risk of the given insurance policy rather than its actual legal form. Accordingly, the Mediation Panel supported the classification of statutory risk insurance policy in classes 1 (accident) and 2 (sickness) of Annex I of Solvency II for new authorizations. In case the insurance policy contains death or any other life coverage, an authorization for life insurance activity is also required.
Furthermore, insurance undertakings should have expertise to ensure appropriate pricing, adequate provisioning, and claims management practices, which are relevant to the risks to be covered and to the target market in the host member state. Both the ACPR and the Central Bank of Ireland agreed with the conclusions of the Mediation Panel. The statutory risk insurance policy covers the maintenance of the civil servants' salary in case of sickness, maternity, work incapacity or disability, along with the payment of death benefits to the beneficiaries of a civil servant.
Keywords: Europe, France, Insurance, Solvency II, Statutory Risk, Mediation Opinion, Insurance Class, ACPR, Central Bank of Ireland, EIOPA
Previous ArticleECB Updates Q&A on AnaCredit Regulation in June 2018
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.