EC published the Implementing Regulation (EU) 2018/1844 regarding the templates for submission of information to the supervisory authorities, in accordance with the Solvency II Directive (2009/138/EC). Regulation 2018/1844 amends and corrects the implementing technical standards in Implementing Regulation (EU) 2015/2450. The changes in Regulation 2018/1844 impact certain Solvency II templates, as presented in Annex I to the regulation. Regulation 2018/1844 shall enter into force the twentieth day following that of its publication in the Official Journal of the European Union.
Regulation 2015/2450 laid down the reporting templates that insurance and reinsurance undertakings, participating insurance and reinsurance undertakings, insurance holding companies, and mixed financial holding companies need to use for reporting information to the supervisory authorities. The Delegated Regulation (EU) 2017/1542, which amends rules on the calculation of regulatory capital requirements for certain categories of assets held by insurance and reinsurance undertakings, introduced the new qualifying infrastructure corporate asset class with a dedicated capital requirement. To ensure that supervisory authorities receive the necessary information on the infrastructure corporates investments made by insurance and reinsurance undertakings, with a level of detail and granularity comparable to that existing for the other asset classes within the calculation of the market risk module, the relevant reporting templates, as laid down in Regulation 2015/2450, are being adapted to take into account those amendments.
Provisions on the correct use of sign of expressions and consistent exchange rates are crucial to improve consistency and quality of the information reported with regard to the historical data denominated in a currency other than the reporting currency. Therefore, Articles 2 and 3 have been amended to improve the quality of the information reported. The templates on variation analysis aim to explain, with economic metrics, why and how the situation of the undertaking has evolved during the year. As stakeholders have identified a number of areas for improvement and further clarification, certain amendments to the instructions of templates S.29.01 to S.29.04 are necessary. Therefore, Regulation 2015/2450 is being amended as follows:
- Point (d) has been added in Article 2.
- Paragraph 4a has been inserted in Article 3.
- Annex I, II, III, and IV has been amended in accordance with Annex I, II, III, and IV to Regulation (EU) 2018/1844, respectively.
Drafting errors in the instructions of the templates, which may lead to inconsistent and misleading information and consequently affect the quality of the supervisory review process, should be corrected. Therefore, certain corrections, mainly addressing missing reporting items or information in the general comments and missing cells in the instructions, were made. Annexes I, II, and III to Regulation 2015/2450 have been corrected in accordance with Annexes V, VI, and VII to Regulation 2018/1844, respectively.
Effective Date: December 16, 2018
Keywords: Europe, EU, Insurance, Reinsurance, Reporting, Solvency II, Templates, Regulation 2018/1844, Regulation 2015/2450, EC
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.