General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
March 21, 2018

EIOPA published a paper on Solvency II tools with macro-prudential impact. This is the second paper in a series on systemic risk and macro-prudential policy in the insurance sector. The paper identifies, classifies, and provides a preliminary assessment of the tools or measures in the Solvency II framework. It assesses tools or measures that could mitigate the systemic risk sources that were identified in the first paper in the series, which was published in February 2018.

The paper provides an overview of the key elements of Solvency II that may contribute to mitigating systemic risk. The paper identifies the most relevant instruments/measures in Solvency II and then describes the way each tool works, maps the tool against a source of systemic risk, and assesses the impact of the tool, to the extent possible. The paper is focused on the tools with direct macro-prudential impact: the symmetric adjustment in the equity risk module, the volatility adjustment, the matching adjustment, the extension of the recovery period, the transitional measure on technical provisions, and prohibiting or restricting certain types of financial activities. Finally, the paper provides an overview of other measures in case of breach of the Solvency Capital Requirement (SCR), along with a summary of other measures available at the national level. The paper also includes an annex on the macro-prudential impact of the most relevant long-term guarantees measures under stress (that is, volatility adjustment and matching adjustment). 

The first paper in this series, which was published in 2017, identified and analyzed the sources of systemic risk in insurance. Through this paper series, EIOPA intends to ensure that any further extension of the debate on systemic risk and macro-prudential policy to the insurance sector fully reflects the specific nature of the industry.


Related Links

Keywords: Europe, EU, Insurance, Systemic Risk, Macro-prudential Policy, Solvency II, EIOPA

Related Insights
News

MAS Amends Notice 637 on Capital Adequacy Requirements in Singapore

MAS published the final, revised Notice 637 on the risk-based capital adequacy requirements in Singapore.

November 13, 2018 WebPage Regulatory News
News

ESMA Updates Q&A on Implementation of CSD Regulation and MAR

ESMA updated questions and answers (Q&A) documents on the implementation of the Central Securities Depository (CSD) Regulation and Market Abuse Regulation (MAR).

November 12, 2018 WebPage Regulatory News
News

FSB Finalizes and Publishes the Cyber Lexicon

FSB published a cyber lexicon, following the public consultation earlier this year.

November 12, 2018 WebPage Regulatory News
News

SRB Updates Liability Data Reporting Template for 2019

SRB published version 2.7.1 of the Liability Data Reporting (LDR) Template.

November 12, 2018 WebPage Regulatory News
News

IMF Publishes Reports on the 2018 Article IV Consultation with Chile

IMF published its staff report and selected issues report under the 2018 Article IV consultation with Chile.

November 09, 2018 WebPage Regulatory News
News

PRA Issues PS27/18 on Implementing the Extension of SM&CR to Insurers

PRA published the policy statement PS27/18, which provides feedback to responses to the consultation paper CP20/18, on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers (Part 2).

November 09, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News
News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News
News

ECB Publishes Guides for Capital and Liquidity Management by Banks

ECB published the guides for capital and liquidity management by banks in EU.

November 09, 2018 WebPage Regulatory News
News

EC Amends Regulation on Prudent Valuation for Supervisory Reporting

EC published the amended Implementing Regulation (EU) 2018/1627 on prudent valuation for supervisory reporting. Regulation 2018/1627 amends the Implementing Regulation 680/2014.

November 09, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2199