Council agrees position on the updated rules for Solvency II
On 17 June 2022, the Council of the EU (the ''Council'') published its position on the proposed amendments that are in the pipeline for Solvency II (the ''Position''). The Council inter alia proposed changes to capital requirements and changes aimed at reducing the administrative burden on insurers.
In its Position, the Council further outlined that the European Insurance and Occupational Pensions Authority (''EIOPA'') should be given a wider portfolio of tasks, which includes:
- the preparation of a report on the assessment of risk related to biodiversity loss by insurers, along with natural disasters and climate related risks, consistently with the Green Deal; and
- Defining consistent guidelines for national rules followed by insurers when assessing their macroprudential risks.
EIOPA publishes summary of supervisory activities in 2021
The European Insurance and Occupational Pensions Authority (''EIOPA'') has published its annual report highlighting the supervisory activities that it carried out in 2021 (the ''Report''). The Report outlines EIOPA's contribution towards enhancing the common European supervisory culture as well as the main supervisory statements and opinions that were published throughout the course of 2022.
The Report further highlights the new areas that EIOPA focused on from a supervisory convergence perspective, including environmental, social and governance risk, SupTech and supervision of run-off portfolios.
The Report further reminds interested participants that the 2022 priorities will revolve around the below main areas:
- Common supervisory culture and tools
- Risks to the internal market and level playing field
- Supervision of emerging risks
ESAs refer stakeholders to statement on application date of new PRIIPS rules
The European Supervisory Authorities (''ESAs'') have referred to stakeholders the newly issued statement by the European Commission on the updated timeline on the application date of new rules for the Key Information Document (''KID'') for packaged retail and insurance-based investment products (''PRIPPs'').
The European Commission reminds national competent authorities to take into account these elements of timings when discharging their supervisory tasks.
EIOPA consults on the advice on the review of the securitisation prudential framework in Solvency II
The European Insurance and Occupational Authority (''EIOPA'') has started a consultation process aimed at inter alia gathering feedback on the issue of capital calibration for securitisations purchased by insurance undertakings (the ''Consultation''). The Consultation aims to gather views from stakeholders on the Call for Advice on the securitisation prudential framework in Solvency II that was published by the European Commission.
Responses to the Consultation will be accepted until 13 July 2022.
ECON issues draft report on proposed amendments to Solvency II
The European Parliament's Economic and Monetary Affairs Committee (''ECON'') has published its draft report on the proposed amendments to the Solvency II Directive (the ''Report'').
In its Report ECON proposes amendments to the below areas:
- proportionality,
- the use of Level 1 Legislation and
- cooperation between supervisors by and making collaboration between home and host supervisors mandatory.
EIOPA issues Feedback Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (''EIOPA'') has published a feedback statement on open insurance, following a discussion paper and public consultation on the topic (the ''Feedback Statement'').
The Feedback Statement outlines a summary of the main responses that EIOPA has gathered together with EIOPA's reaction to the same. The Feedback Statement highlights the possible uses of open insurance in improving pricing and transparency as well as allowing supervisors to access real-time data which would in turn help them identify poor advice and monitor automatic compliance. A number of risks were also indicated such as the potential misuse of data and discrimination against consumers.
EIOPA intends to continue legislative developments which may potentially affect open insurance and will provide its feedback as necessary.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
