EIOPA PUBLISHES ITS REPORT ON THE FUNCTIONING OF COLLEGES OF SUPERVISORS AND THE ACTION PLAN 2013

The European Insurance and Occupational Pensions Authority (EIOPA)
published today its annual Report on the Functioning of Colleges of
Supervisors and the Action Plan 2013.

According to the Report, by the end of 2012, 91 insurance groups with
cross-border undertakings were identified in the European Economic Area
(EEA). Colleges of supervisors were organized for 78 groups against 69
groups in 2011. For at least 20 large groups, college meetings were
organised more than once a year. 17 national supervisory authorities acted
as Group Supervisors.

In the course of 2012, EIOPA attended almost all college meetings for 75
groups. The Authority contributed to the work of colleges by developing a
catalogue for regular information exchange and by providing specific
presentations in colleges about EIOPA's regular assessment of risks
faced by the EEA insurance industry, including the explanation of EIOPA
Risk Dashboard results.

The Report concludes that despite the uncertainty over the exact date for
the Solvency II implementation, supervisors involved in colleges are
making great efforts to prepare for the implementation of the new
framework and in particular, during the pre-application process, to
prepare for the use of internal models under Solvency II. Nevertheless,
EIOPA observed differences between colleges in the scope and frequency of
information exchange as well as in the approaches taken towards risk
assessment and analysis.

In this context, the main targets of EIOPA's Action Plan for 2013 are to
develop in each college a common understanding on risk assessment and
analysis, to assess the development of a coordination arrangement between
supervisors for the interim period and to further align the work on the
pre-application of Internal Models.

Gabriel Bernardino, Chairman of EIOPA, said: "The strategic goal of
EIOPA's college work is to set up consistent, coherent and effective
EEA-wide supervision of cross border insurance groups for the benefit of
both group and solo supervision. National supervisors and EIOPA have made
relevant progress in 2012 and the Action plan for 2013 aims to improve
further the work of colleges in a challenging and demanding environment".


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EIOPA LAUNCHES THE LONG-TERM GUARANTEE ASSESSMENT

The European Insurance and Occupational Pensions Authority (EIOPA) launched
on 28 January 2013 a technical assessment of the long-term guarantee (LTG)
package agreed by the Trilogue parties (the European Parliament, the
Council of the EU and the European Commission) in the context of the
Omnibus II Directive negotiations. Its aim is to test various options
contained in the Solvency II LTG measures in order to assess the effects
that the implementation of such measures may have on: policyholders and
beneficiaries, insurance and reinsurance undertakings, supervisory
authorities and the financial system as a whole.

The assessment will focus on the evaluation of the following key features
(individually and in combination): adapted relevant risk-free interest
rate term structure ("Counter-cyclical Premium"); extrapolation;
matching adjustment ("Classic" and "Extended"); transitional
measures; and extension of the "Recovery Period".

In providing quantitative data for the purposes of this assessment,
insurance undertakings should follow the Technical Specifications
published today by EIOPA:

https://eiopa.europa.eu/consultations/qis/insurance/long-term-guarantees-assessment/index.html
(Link:
https://eiopa.europa.eu/consultations/qis/insurance/long-term-guarantees-assessment/index.html
)

Insurance undertakings will have until 31 March 2013 to carry out their
estimation of the impact of the measures covered in the LTGA. In the
course of April and May the data submitted by insurance undertakings will,
first, be validated by the national competent authorities (NCAs) and,
then, be analysed by EIOPA at the EU level. The report presenting the
technical results of the LTGA exercise together with EIOPA's conclusions
is planned to be published in the second half of June 2013.

The assessment covers life as well as non-life insurance companies in the
different national markets. The sample captures a range of undertakings of
diverse size and nature.

Gabriel Bernardino, Chairman of EIOPA, said: "EIOPA's independent
supervisory assessment will provide a reliable basis for an informed
political decision on the long term guarantee measures to be included in
Solvency II. It is essential for policyholder protection and financial
stability that Solvency II appropriately reflects the long term financial
position and risk exposure of insurance and reinsurance undertakings
carrying out insurance business of a long-term nature."


This newsletter was sent to you by:

EIOPA
WesthafenTower | Westhafenplatz 1 | 60327 Frankfurt | Germany
Phone: +49 69 951119-20
Fax: +49 69 951119-19

info@eiopa.europa.eu
https://eiopa.europa.eu

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Don't want to receive this newsletter anymore?

Please login to the Restricted Area of the EIOPA website and change
your user profile:

https://eiopa.europa.eu/restricted-area/index.html

If you forgot your password, you will find a link to receive a new
password on the login page of the EIOPA Restricted Area.