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Eiopa delivers solvency ii implementing technical standards on Supervisory approval processes
  • The Implementing Technical Standards (ITS) pave the way for riskbased approval processes reflecting the nature, scale and complexity of the risks attached to the insurer’s business;

  • The ITS need to be endorsed by the European Commission;

  • The ITS will become legally binding once translated into all official EU languages.

Frankfurt, 31 October 2014 – The European Insurance and Occupational Pensions Authority (EIOPA) has submitted today to the European Commission (EC) for endorsement the first set of draft Solvency II Implementing Technical Standards (ITS).

The current ITS define the processes for approval of the Internal Models, Matching Adjustment, Ancillary Own Funds, Undertaking4Specific Parameters and Special Purpose Vehicles as well as the joint decision process on Group Internal Models. The ITS are addressed both to undertakings and national supervisors. Their purpose is to guarantee that (re)insurers present all information that is necessary for supervisors to give a legally certain and prudentially sound approval of key elements of Solvency II.

The EC has to endorse the Implementing Technical Standards within 3 months. Following endorsement, the ITS will be translated into all official EU languages and will become legally binding.

Gabriel Bernardino, Chairman of EIOPA, said: “These ITS pave the way for riskbased approval processes reflecting the nature, scale and complexity of the risks attached to the insurers’ business ensuring a convergent approach throughout Europe.

I would like to thank EIOPA’s Insurance and Reinsurance Stakeholder Group and all other participants in the public consultation for their valuable input. Your feedback provided us with important guidance on how to make the ITS prudentially sound”.

In addition, as part of its transparency policy, EIOPA is publishing the Final Report on the public consultation regarding this first Set of Solvency II ITS, which includes an Impact Assessment, the resolution of comments of stakeholders, and, in particular, the Opinion of EIOPA’s Insurance and Reinsurance Stakeholder Group. All the documentation can be viewed on EIOPA’s website: http://goo.gl/EdSBcl

 

Note for Editors:

Solvency II introduces economic risk4based capital requirements across all EU Member States for the first time. It replaces 14 existing directives (commonly referred to as 'Solvency I'). The new rules also place greater emphasis on risk management and introduce stricter requirements on the public disclosure of certain information.

The Solvency II regulatory phase consists of different levels of rules:

 

Implementing Technical Standards define forms, templates and procedures for specific areas under Solvency II. They do not imply strategic decisions or policy choices. EIOPA is exercising the power to draft the ITS according to its Founding Regulation (1094/2010) and based on the empowerments introduced by the Omnibus II Directive.

The European Insurance and Occupational Pensions Authority (EIOPA) was established on 1 January 2011 as a result of the reforms to the structure of supervision of the financial sector in the European Union.

EIOPA is part of the European System of Financial Supervision consisting of three European Supervisory Authorities, the National Supervisory Authorities and the European Systemic Risk Board. It is an independent advisory body to the European Commission, the European Parliament and the Council of the European Union.

EIOPA’s core responsibilities are to support the stability of the financial system, transparency of markets and financial products as well as the protection of insurance policyholders, pension scheme members and beneficiaries.

https://eiopa.europa.eu/publications/technical-standards/draft-implementing-technical-standards-on-the-supervisory-approval-processes-for-solvency-ii/index.html

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