Featured Product

    EIOPA Requests Data on LTG Measures from Insurers Under Solvency II

    March 18, 2019

    EIOPA has requested the European Economic Area insurance undertakings, which are subject to Solvency II, to provide information on the long-term guarantee (LTG) measures. EIOPA requires this information for the preparation of the fourth LTG report, the opinion on LTG measures, and the review of Solvency II. The fourth LTG report of EIOPA is due in 2019 while the Solvency II review is due in 2020. EIOPA also updated the reporting template and technical specifications for the provision of this information.

    Insurers are being requested to provide information on LTG measures, dynamic volatility adjustment, and long-term illiquid liabilities. The information to be provided on LTG measures includes impact of the extrapolation of risk-free interest rates on the financial position of undertakings, losses due to bond defaults and downgrades of bonds in matching adjustment portfolios, assets in matching adjustment portfolios, diversification effects in the calculation of the Solvency Capital Requirement when the matching adjustment is used, and overcompensation of the volatility adjustment.

    National supervisory authorities will contact a representative sample of undertakings regarding the provision of information for each information request. Insurance undertakings should submit the completed reporting templates to the respective national supervisory authority. The templates should be filled according to the instructions in the technical specifications and taking into account the technical information. Insurance and reinsurance undertakings are requested to submit results to national supervisory authorities by May 17, 2019, whereas the deadline for insurance groups (for the dynamic volatility adjustment) is June 14, 2019. Deadline for national supervisory authorities to report to EIOPA (except group data) is May 29, 2019 while the deadline to report to EIOPA on groups is June 28, 2019.

    The Solvency II Directive requires a review of the LTG measures and the measures on equity risk by January 01, 2021. The review will consist of the following phases:

    • EIOPA will provide annual reports on the impact of the application of the LTG measures and the measures on equity risk to the European Parliament, the Council of the EU, and the EC. 
    • EIOPA will submit an Opinion on the assessment of the application of the LTG measures and the measures on equity risk to EC in 2020.
    • Based on EIOPA's Opinion, EC will submit a report on the impact of the LTG measures and the measures on equity risk to the European Parliament and to the Council of the EU.

     

    Related Links

    Keywords: Europe, EU, Insurance, Solvency II, LTG Measures, SCR, Volatility Adjustment, EIOPA

    Featured Experts
    Related Articles
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Final Policy on Maintenance of TMTP Under Solvency II

    PRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.

    November 14, 2019 WebPage Regulatory News
    News

    FSB Examines Implementation of Resolution Regimes in Financial Sector

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.

    November 14, 2019 WebPage Regulatory News
    News

    IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic Risk

    IAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Templates for Statistical Disclosures Under Solvency II

    PRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4157