EIOPA published a report on the supervisory activities in 2019. The report highlights activities and achievements during the year, covering both prudential and conduct of business supervision. The work focused on the priorities identified in the Supervisory Convergence work plan for 2019 as well on issues that emerged during the year. The report also sets out supervisory priorities for 2020. Looking ahead, EIOPA will focus its supervisory work on activities set out in the Supervisory Convergence Plan, which was published in February 2020.
The report mentions that the work on supervisory convergence developed over the last years played a crucial role during 2019 and will continue in 2020 via the Solvency II 2020 Review. This work allowed the identification of inconsistencies in the implementation of certain Solvency II areas, such as technical provisions, group supervision, application of the proportionality principle, and supervision of captives. This knowledge led in some cases to proposals to amend the Solvency II legislative framework while in others it allowed to identify areas where further work is needed from a supervisory convergence perspective. Both approaches should contribute in the future to a more consistent application of Solvency II. Also in the context of Solvency II, EIOPA published a supervisory statement on the application of the proportionality principle in the supervision of the Solvency Capital Requirement.
EIOPA delivered a peer review on the Regular Supervisory Report and the use of proportionality principle for setting its frequency which will feed the work under development under the Solvency II 2020 review, in particular the application of the proportionality principle. EIOPA also published the key findings of its thematic review on the use of Big Data Analytics in motor and health insurance. The report highlighted that, in 2020, EIOPA will continue to assess supervisory practices in general and on a thematic basis. EIOPA will support the supervisory capacity of national competent authorities and supervisory convergence, focus on cross-border and third country activities, and further investigate possible conduct risks. The priorities for 2020 include the following:
- Focused bilateral engagements with national competent authorities, including dedicated internal model visits
- Technical support to national competent authorities, including conduct oversight capacity, such as under the umbrella of the EC Structural Reform Support Service
- Ongoing monitoring of the market to detect, handle, and follow-up identified risks, including developing data-related aspects, and to preemptively identify prudential and conduct-related issues (For conduct issues, EIOPA is expected to focus on the four priority conduct risks identified in 2019.)
- Emphasis on cross-border activities, via the colleges, bilateral engagements with group supervisors, specific cooperation platforms and any other form of collaboration, where appropriate via joint onsite inspections
- Continued engagement with national competent authorities to further understand and, where relevant, address conduct risks in the European unit-linked market, including supervisory thematic platform, laying basis for extensive future work
Keywords: Europe, EU, Insurance, Solvency II, SCR, Big Data, Supervisory Activities, Supervisory Priorities, Proportionality, Solvency II Review, Supervisory Convergence, EIOPA
Previous ArticleEBA Expands Scope of Interactive Single Rulebook and Q&A Tool
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.
EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.
MAS published amendments to Notice 648 on the issuance of covered bonds by banks incorporated in Singapore.
FDIC has selected 14 technology companies—including Accenture Federal Services, LLC, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the next phase of the rapid prototyping competition.
GLEIF announced that financial institutions worldwide can realize a variety of cost, efficiency, and customer experience benefits by assuming a new “validation agent” role within the Global Legal Entity Identifier (LEI) System.