With this Opinion in the field of consumer protection, EIOPA recommends
national competent authorities (NCAs) to analyse their national Payment
Protection Insurance (PPI) markets based on the findings of this opinion.
PPI is an insurance product designed to provide coverage for the consumer
of a financial obligation generally in the form of a mortgage or a
consumer loan repayment, in case they are unable to fulfil a payment. The
consumer protection issues surrounding PPI have triggered action from
regulatory or supervisory bodies in a number of jurisdictions.
EIOPA acknowledges that PPI products, when properly designed and sold,
serve legitimate consumer needs. Yet, EIOPA also notes that, in a number
of jurisdictions, significant cases of misselling have occurred, to the
detriment of consumers and negatively affecting the reputation of the
insurance sector as a whole. The most frequently arising mis-selling
issues for PPI products are eligibility/suitability issues and providing
misleading information. In these cases, for example, consumers are either
unable to claim benefits, because their individual situation is not
covered by the policy, or they have not yet received the necessary
information to base their choice on. Moreover, market imperfections, such
as the fact that PPI is often sold together with the loan products
(cross-selling) or that consumers do not have comparable information, also
contribute to distorted consumer choice. NCAs are requested to analyse
whether PPI merits (further) investigation and any possible (further)
supervisory and/or regulatory action at national level, based on the
findings of the opinion. The opinion requests NCAs to provide feedback on
their previous activities and on any future actions in this area based on
this opinion within six months from today.
Based on the information received from NCAs EIOPA will decide if and what
kind of further action is needed at an EU level.
As EIOPA's Chairman Gabriel Bernardino explained: "We have observed in
certain countries the emergence in the PPI market of business models where
market power of certain distributors led to disproportionate levels of
commissions, often as high as 80% of premiums paid by consumers. This and
other practices have led to considerable consumer detriment and have been
subject to regulatory and supervisory action. With this Opinion EIOPA
intends to obtain a clear picture of the reality in all the EU countries
in order to better protect consumers and promote regulatory and
supervisory convergence."
The text of EIOPA Opinion on Payment Protection Insurance and the
Background Note can be viewed on EIOPA website:
https://eiopa.europa.eu/publications/eiopa-opinions/index.html
(Link:
https://eiopa.europa.eu/publications/eiopa-opinions/index.html )
This newsletter was sent to you by:
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vrijdag 28 juni 2013
EIOPA elects new members of its Management Board
The Board of Supervisors of the European Insurance and Occupational
Pensions Authority (EIOPA) elected four members of EIOPA Management Board:
Peter Braumüller, Managing Director of the Financial Market Authority
(Austria) – re-elected;
Jan Parner, Deputy Director General of Finanstilsynet (Denmark) –
re-elected;
Felix Hufeld, Chief Executive Director of Insurance Supervision in the
Federal Financial Supervisory Authority, BaFin (Germany) – elected;
Sergej Simoniti, Director of Insurance Supervision Agency (Slovenia) –
elected.
The Management Board of EIOPA is composed of the Chairman of EIOPA and six
other members of the Board of Supervisors, elected by and from the voting
members of the Board of Supervisors.
The term of office of the Management Board members is 2,5 years with the
possibility to be extended once. Mandates of the members should be
overlapping in order to ensure appropriate rotation and business
continuity.
Gabriel Bernardino, Chairman of EIOPA, said: "It is my pleasure to
welcome the new Management Board members and to work together with them in
order to fulfil the challenging mission of EIOPA: to safeguard public
interest by contributing to the stability and effectiveness of the
financial system, and to protect the rights of policyholders, pension
scheme members and beneficiaries.
At the same time my deep gratitude goes to the terminating members -
Matthew Elderfield (Central Bank of Ireland) and Damian Jaworski (Polish
Financial Supervision Authority). We highly appreciate their very valuable
input in all the initiatives and projects of EIOPA and their truly
European spirit".
This newsletter was sent to you by:
EIOPA
WesthafenTower | Westhafenplatz 1 | 60327 Frankfurt | Germany
Phone: +49 69 951119-20
Fax: +49 69 951119-19
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password on the login page of the EIOPA Restricted Area.
Pensions Authority (EIOPA) elected four members of EIOPA Management Board:
Peter Braumüller, Managing Director of the Financial Market Authority
(Austria) – re-elected;
Jan Parner, Deputy Director General of Finanstilsynet (Denmark) –
re-elected;
Felix Hufeld, Chief Executive Director of Insurance Supervision in the
Federal Financial Supervisory Authority, BaFin (Germany) – elected;
Sergej Simoniti, Director of Insurance Supervision Agency (Slovenia) –
elected.
The Management Board of EIOPA is composed of the Chairman of EIOPA and six
other members of the Board of Supervisors, elected by and from the voting
members of the Board of Supervisors.
The term of office of the Management Board members is 2,5 years with the
possibility to be extended once. Mandates of the members should be
overlapping in order to ensure appropriate rotation and business
continuity.
Gabriel Bernardino, Chairman of EIOPA, said: "It is my pleasure to
welcome the new Management Board members and to work together with them in
order to fulfil the challenging mission of EIOPA: to safeguard public
interest by contributing to the stability and effectiveness of the
financial system, and to protect the rights of policyholders, pension
scheme members and beneficiaries.
At the same time my deep gratitude goes to the terminating members -
Matthew Elderfield (Central Bank of Ireland) and Damian Jaworski (Polish
Financial Supervision Authority). We highly appreciate their very valuable
input in all the initiatives and projects of EIOPA and their truly
European spirit".
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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Please login to the Restricted Area of the EIOPA website and change
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password on the login page of the EIOPA Restricted Area.
Joint Committee of ESAs holds its first Consumer Protection Day
The Joint Committee of the European Supervisory Authorities (Joint
Committee) held its first Consumer Protection Day on 25 June 2013 in
Paris.
Consumer protection is a major objective for the European Supervisory
Authorities (ESAs – EBA, ESMA, EIOPA) and under the auspices of the
Joint Committee, they continue to place this high on their agenda for
2013.
The aim of the event was to provide a forum for exchange and discussion on
important and current cross-sectoral consumer issues.
The Joint Consumer Protection Day attracted around 250 consumer
representatives, academics, legal and financial consultants, national
supervisors, experts from the EU institutions and financial services
industry (banking, securities, insurance and pensions).
In his opening speech Gabriel Bernardino, Chairman of EIOPA and the current
Joint Committee Chair, called for regulatory consistency across the three
financial sectors and urged the application of sound conduct of business
practices by market participants. He also spoke about the emergence of a
new paradigm on transparency and fairness towards consumers. "In order
to regain trust and confidence by consumers, financial institutions need
to develop simpler and more understandable products, devote further
attention to the fairness of contractual conditions and definitely they
need to review the charges and commissions applied ensuring that they are
not disproportionate", he said.
During the panel discussion on PRIPs (proposal for a 'Regulation on key
information documents for investment products') participants discussed
the scope of the proposal together with considerations as to personalise
the so-called Key Information Document enabling comparison between covered
products (e.g. by including national information on tax implications). The
importance of behavioural finance in product disclosure was also addressed
and views were shared on which kind of information consumers generally
need in order to take informed decisions on whether to buy or not to buy a
product.
Different break-out sessions on consumer trends, sales incentives and
product intervention were held.
In this respect, the panellists discussing consumer trends, agreed that the
ESAs need enhanced data collection powers to ensure data of quality with a
view to continuously collect, analyse and report on consumer trends. The
usefulness of comparison websites and payment protection instruments, two
current trends in some of the financial sectors, was highlighted whilst
focus was given to the consumer detriment also surrounding these types of
distribution channels and instruments.
On the topic of sales incentives, it was felt that in order to avoid
mis-selling of financial products, several changes in sales culture are
urgently required.
On product intervention, participants debated whether these powers would
have the most value as a 'threat' in influencing firms to act in the
best interests of their clients, and that product intervention should be
seen in the round, as part of product design, product governance, and
product distribution in order to address consumer protection issues before
and up to point of sale, rather than playing catch-up after products hit
the market.
Summarising the panel discussions, Andrea Enria, Chairman of EBA, said:
"Today's conference has stimulated a lively and fruitful discussion.
The ESAs will continue to join forces to identify cross-cutting issues and
to address them jointly to the benefit of consumers across the EU".
Steven Maijoor, Chairman of ESMA, in his closing remarks, indicated:
"Whilst the financial crisis is mainly a stability crisis, and the
regulatory response has been focussed on stability issues, we must not
lose sight of our mandate, at European level, to promote the interests of
consumers and to ensure a high level of consumer protection. But
delivering on protecting consumers' needs buy-in from industry (and
consumers) too.
"It is not all about regulation, supervision and enforcement. Industry
should internalise clients' interests and business models need to focus
better on client needs".
Click here to view the full text of Gabriel Bernardino's speech at the
Consumer Protection Day:
https://eiopa.europa.eu/press-room/speeches-presentations-and-interviews/index.html
(Link:
https://eiopa.europa.eu/press-room/speeches-presentations-and-interviews/index.html
)
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
---
Don't want to receive this newsletter anymore?
Please login to the Restricted Area of the EIOPA website and change
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If you forgot your password, you will find a link to receive a new
password on the login page of the EIOPA Restricted Area.
Committee) held its first Consumer Protection Day on 25 June 2013 in
Paris.
Consumer protection is a major objective for the European Supervisory
Authorities (ESAs – EBA, ESMA, EIOPA) and under the auspices of the
Joint Committee, they continue to place this high on their agenda for
2013.
The aim of the event was to provide a forum for exchange and discussion on
important and current cross-sectoral consumer issues.
The Joint Consumer Protection Day attracted around 250 consumer
representatives, academics, legal and financial consultants, national
supervisors, experts from the EU institutions and financial services
industry (banking, securities, insurance and pensions).
In his opening speech Gabriel Bernardino, Chairman of EIOPA and the current
Joint Committee Chair, called for regulatory consistency across the three
financial sectors and urged the application of sound conduct of business
practices by market participants. He also spoke about the emergence of a
new paradigm on transparency and fairness towards consumers. "In order
to regain trust and confidence by consumers, financial institutions need
to develop simpler and more understandable products, devote further
attention to the fairness of contractual conditions and definitely they
need to review the charges and commissions applied ensuring that they are
not disproportionate", he said.
During the panel discussion on PRIPs (proposal for a 'Regulation on key
information documents for investment products') participants discussed
the scope of the proposal together with considerations as to personalise
the so-called Key Information Document enabling comparison between covered
products (e.g. by including national information on tax implications). The
importance of behavioural finance in product disclosure was also addressed
and views were shared on which kind of information consumers generally
need in order to take informed decisions on whether to buy or not to buy a
product.
Different break-out sessions on consumer trends, sales incentives and
product intervention were held.
In this respect, the panellists discussing consumer trends, agreed that the
ESAs need enhanced data collection powers to ensure data of quality with a
view to continuously collect, analyse and report on consumer trends. The
usefulness of comparison websites and payment protection instruments, two
current trends in some of the financial sectors, was highlighted whilst
focus was given to the consumer detriment also surrounding these types of
distribution channels and instruments.
On the topic of sales incentives, it was felt that in order to avoid
mis-selling of financial products, several changes in sales culture are
urgently required.
On product intervention, participants debated whether these powers would
have the most value as a 'threat' in influencing firms to act in the
best interests of their clients, and that product intervention should be
seen in the round, as part of product design, product governance, and
product distribution in order to address consumer protection issues before
and up to point of sale, rather than playing catch-up after products hit
the market.
Summarising the panel discussions, Andrea Enria, Chairman of EBA, said:
"Today's conference has stimulated a lively and fruitful discussion.
The ESAs will continue to join forces to identify cross-cutting issues and
to address them jointly to the benefit of consumers across the EU".
Steven Maijoor, Chairman of ESMA, in his closing remarks, indicated:
"Whilst the financial crisis is mainly a stability crisis, and the
regulatory response has been focussed on stability issues, we must not
lose sight of our mandate, at European level, to promote the interests of
consumers and to ensure a high level of consumer protection. But
delivering on protecting consumers' needs buy-in from industry (and
consumers) too.
"It is not all about regulation, supervision and enforcement. Industry
should internalise clients' interests and business models need to focus
better on client needs".
Click here to view the full text of Gabriel Bernardino's speech at the
Consumer Protection Day:
https://eiopa.europa.eu/press-room/speeches-presentations-and-interviews/index.html
(Link:
https://eiopa.europa.eu/press-room/speeches-presentations-and-interviews/index.html
)
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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Please login to the Restricted Area of the EIOPA website and change
your user profile:
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If you forgot your password, you will find a link to receive a new
password on the login page of the EIOPA Restricted Area.
donderdag 27 juni 2013
EIOPA launches public consultation on two good practices reports in the area of consumer protection
The European Insurance and Occupational Pensions Authority (EIOPA) has
launched today a public consultation on two Good Practices Reports on
comparison websites and knowledge & ability of distributors of insurance
products.
The Report on comparison websites outlines good practices concerning online
comparisons of insurance products. The good practices address primarily
the activities of commercial comparison websites; however, also
non-commercial websites' operators are equally encouraged to check
whether their practices are in line with the good practices identified,
and to adapt them accordingly, if needed. The good practices concern the
following areas:
i) Information about the website;
ii) Market coverage;
iii) Presentation of information;
iv) Criteria used to make the ranking;
v) Frequency of updating the information; and
vi) Dealing with potential conflicts of interest.
Furthermore, the Report also identifies main features and different
business models of comparison websites. The objective of the Report is to
promote transparency, simplicity and fairness for Internet users in the
market for online comparisons of insurance products.
The Report on knowledge & ability sets out good supervisory practices in
the form of high-level principles that competent authorities would apply
to all distributors of insurance products. These are supplemented by
indicative examples of what a competent authority could require a
distributor to demonstrate in terms of knowledge and ability, thus
allowing for flexibility to adopt a proportionate approach at national
level. For example, the report promotes not only appropriate knowledge and
ability for distributors, but also the demonstration of ethical and
professional conduct at all times and suggests a minimum level of
continuous professional development (CPD). The objective of the Report is
to promote common supervisory approaches in an area where diverse national
approaches have arisen out of the implementation of IMD1.
The period for providing comments on the two Good Practices reports will
end on 23 September 2013.
The Consultation Papers can be viewed on EIOPA website:
https://eiopa.europa.eu/consultations/consultation-papers/index.html
(Link:
https://eiopa.europa.eu/consultations/consultation-papers/index.html )
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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Please login to the Restricted Area of the EIOPA website and change
your user profile:
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If you forgot your password, you will find a link to receive a new
password on the login page of the EIOPA Restricted Area.
launched today a public consultation on two Good Practices Reports on
comparison websites and knowledge & ability of distributors of insurance
products.
The Report on comparison websites outlines good practices concerning online
comparisons of insurance products. The good practices address primarily
the activities of commercial comparison websites; however, also
non-commercial websites' operators are equally encouraged to check
whether their practices are in line with the good practices identified,
and to adapt them accordingly, if needed. The good practices concern the
following areas:
i) Information about the website;
ii) Market coverage;
iii) Presentation of information;
iv) Criteria used to make the ranking;
v) Frequency of updating the information; and
vi) Dealing with potential conflicts of interest.
Furthermore, the Report also identifies main features and different
business models of comparison websites. The objective of the Report is to
promote transparency, simplicity and fairness for Internet users in the
market for online comparisons of insurance products.
The Report on knowledge & ability sets out good supervisory practices in
the form of high-level principles that competent authorities would apply
to all distributors of insurance products. These are supplemented by
indicative examples of what a competent authority could require a
distributor to demonstrate in terms of knowledge and ability, thus
allowing for flexibility to adopt a proportionate approach at national
level. For example, the report promotes not only appropriate knowledge and
ability for distributors, but also the demonstration of ethical and
professional conduct at all times and suggests a minimum level of
continuous professional development (CPD). The objective of the Report is
to promote common supervisory approaches in an area where diverse national
approaches have arisen out of the implementation of IMD1.
The period for providing comments on the two Good Practices reports will
end on 23 September 2013.
The Consultation Papers can be viewed on EIOPA website:
https://eiopa.europa.eu/consultations/consultation-papers/index.html
(Link:
https://eiopa.europa.eu/consultations/consultation-papers/index.html )
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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password on the login page of the EIOPA Restricted Area.
maandag 17 juni 2013
REMINDER - EIOPA’s Call for Expression of Interest regarding the setting up of its Stakeholder Groups lasts until 23 Jun
The European Insurance and Occupational Pensions Authorities (EIOPA) kindly
reminds that the applications deadline for EIOPA Stakeholder Groups, the
Insurance and Reinsurance Stakeholder Group (IRSG) and the Occupational
Pensions Stakeholder Group (OPSG), expires on 23 June 2013, 23:59 hrs CET.
The Stakeholder Groups are set up to help facilitate consultation with
stakeholders in areas relevant to the tasks of EIOPA.
Members of the IRSG, 30 in total, are individuals appointed to represent in
balanced proportions insurance and reinsurance undertakings and insurance
intermediaries operating in the Union, and their employees'
representatives, as well as consumers, users of insurance and reinsurance
services, representatives of SMEs and representatives of relevant
professional associations. At least five of its members shall be
independent top-ranking academics.
Members of the OPSG, 30 in total, are individuals appointed to represent in
balanced proportions institutions for occupational retirement provision
operating in the Union, representatives of employees, representatives of
beneficiaries, representatives of SMEs and representatives of relevant
professional associations. At least five of its members shall be
independent top-ranking academics.
The Calls for Expression of Interest and the application documents (in
English only) can be accessed from EIOPA website:
https://eiopa.europa.eu/about-eiopa/organisation/stakeholder-groups/stakeholder-groups-selection-process-2013/index.html.
(Link:
https://eiopa.europa.eu/about-eiopa/organisation/stakeholder-groups/stakeholder-groups-selection-process-2013/index.html.
)
Candidates are kindly asked to make sure that their applications are
complete and contain all the requested documentation.
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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your user profile:
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If you forgot your password, you will find a link to receive a new
password on the login page of the EIOPA Restricted Area.
reminds that the applications deadline for EIOPA Stakeholder Groups, the
Insurance and Reinsurance Stakeholder Group (IRSG) and the Occupational
Pensions Stakeholder Group (OPSG), expires on 23 June 2013, 23:59 hrs CET.
The Stakeholder Groups are set up to help facilitate consultation with
stakeholders in areas relevant to the tasks of EIOPA.
Members of the IRSG, 30 in total, are individuals appointed to represent in
balanced proportions insurance and reinsurance undertakings and insurance
intermediaries operating in the Union, and their employees'
representatives, as well as consumers, users of insurance and reinsurance
services, representatives of SMEs and representatives of relevant
professional associations. At least five of its members shall be
independent top-ranking academics.
Members of the OPSG, 30 in total, are individuals appointed to represent in
balanced proportions institutions for occupational retirement provision
operating in the Union, representatives of employees, representatives of
beneficiaries, representatives of SMEs and representatives of relevant
professional associations. At least five of its members shall be
independent top-ranking academics.
The Calls for Expression of Interest and the application documents (in
English only) can be accessed from EIOPA website:
https://eiopa.europa.eu/about-eiopa/organisation/stakeholder-groups/stakeholder-groups-selection-process-2013/index.html.
(Link:
https://eiopa.europa.eu/about-eiopa/organisation/stakeholder-groups/stakeholder-groups-selection-process-2013/index.html.
)
Candidates are kindly asked to make sure that their applications are
complete and contain all the requested documentation.
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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Please login to the Restricted Area of the EIOPA website and change
your user profile:
https://eiopa.europa.eu/restricted-area/index.html
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password on the login page of the EIOPA Restricted Area.
RESULTS OF EIOPA LONG-TERM GUARANTEES ASSESSMENT
The European Insurance and Occupational Pensions Authority (EIOPA) has
published today its Technical Findings on the Long-Term Guarantee
Assessment (LTGA). EIOPA conducted the assessment at the request of the
Trialogue parties (the European Parliament, the European Commission and
the Council of the EU) as input to the political discussions on
finalisation of the Omnibus II Directive. The LTGA tested the so-called
Long-Term Guarantee package - a set of potential measures aimed at
ensuring an appropriate supervisory treatment of long term guarantee
products, under volatile and exceptional market conditions.
EIOPA concluded that the final Long-Term Guarantee package to be included
in the Solvency II framework should fulfil a number of principles in order
to ensure a high degree of policyholder protection, as well as effective
supervisory process:
- Alignment with the Solvency II framework and the economic balance sheet
concept;
- Full consistency and comparability in order to enhance the single market;
- Efficient linking of all the three pillars (quantitative basis,
qualitative requirements and enhanced reporting and disclosure);
- Proportionality and simplicity;
- Adequate treatment of transitional issues.
On the basis of the assessment and the outlined principles, EIOPA supports
the inclusion of some of the measures tested: Extrapolation,
"Classical" Matching Adjustment, Transitional measures and Extension
of the Recovery Period, with slight amendments to provide the right
incentives for sound risk management.
EIOPA advises to exclude the so-called Extended Matching Adjustment on the
basis that it would not provide sufficient policyholder protection and
would be unduly difficult to supervise. In addition, the Counter-Cyclical
Premium was judged to be likely to have an adverse financial stability
impact due to the way it would be triggered, as well as the perverse
impacts on undertakings' solvency requirements that it generated.
As a consequence, EIOPA advises to replace the CCP with a simpler, more
predictable measure, the Volatility Balancer, which would deal with the
unintended consequences on undertakings' capital requirements of
short-term volatility.
EIOPA further recommends that the impact of the application of the measures
on the solvency position of individual undertakings be publicly disclosed
as part of the normal disclosure process.
EIOPA's Technical Findings on the Long-Term Guarantee Assessment and all
the relevant documentation can be accessed here:
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
)
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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Please login to the Restricted Area of the EIOPA website and change
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password on the login page of the EIOPA Restricted Area.
published today its Technical Findings on the Long-Term Guarantee
Assessment (LTGA). EIOPA conducted the assessment at the request of the
Trialogue parties (the European Parliament, the European Commission and
the Council of the EU) as input to the political discussions on
finalisation of the Omnibus II Directive. The LTGA tested the so-called
Long-Term Guarantee package - a set of potential measures aimed at
ensuring an appropriate supervisory treatment of long term guarantee
products, under volatile and exceptional market conditions.
EIOPA concluded that the final Long-Term Guarantee package to be included
in the Solvency II framework should fulfil a number of principles in order
to ensure a high degree of policyholder protection, as well as effective
supervisory process:
- Alignment with the Solvency II framework and the economic balance sheet
concept;
- Full consistency and comparability in order to enhance the single market;
- Efficient linking of all the three pillars (quantitative basis,
qualitative requirements and enhanced reporting and disclosure);
- Proportionality and simplicity;
- Adequate treatment of transitional issues.
On the basis of the assessment and the outlined principles, EIOPA supports
the inclusion of some of the measures tested: Extrapolation,
"Classical" Matching Adjustment, Transitional measures and Extension
of the Recovery Period, with slight amendments to provide the right
incentives for sound risk management.
EIOPA advises to exclude the so-called Extended Matching Adjustment on the
basis that it would not provide sufficient policyholder protection and
would be unduly difficult to supervise. In addition, the Counter-Cyclical
Premium was judged to be likely to have an adverse financial stability
impact due to the way it would be triggered, as well as the perverse
impacts on undertakings' solvency requirements that it generated.
As a consequence, EIOPA advises to replace the CCP with a simpler, more
predictable measure, the Volatility Balancer, which would deal with the
unintended consequences on undertakings' capital requirements of
short-term volatility.
EIOPA further recommends that the impact of the application of the measures
on the solvency position of individual undertakings be publicly disclosed
as part of the normal disclosure process.
EIOPA's Technical Findings on the Long-Term Guarantee Assessment and all
the relevant documentation can be accessed here:
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
)
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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Please login to the Restricted Area of the EIOPA website and change
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password on the login page of the EIOPA Restricted Area.
vrijdag 14 juni 2013
EIOPA Annual Report 2012
The European Insurance and Occupational Pensions Authority (EIOPA)
published today its Annual Report 2012 as requested by EIOPA Founding
Regulation (Article 43.5).
2012 is the second year of EIOPA's work as a European Supervisory
Authority. In the course of this year, EIOPA continued its work in its
seven core areas: regulatory tasks; supervisory tasks; consumer protection
and financial innovation; creation of the common supervisory culture;
financial stability; crisis prevention, management and resolution;
external relations.
Detailed description of EIOPA activities as well as the provisional
Financial Statement and the summary of EIOPA Work Programme 2013 can be
found here: https://eiopa.europa.eu/publications/annual-reports/index.html
(Link:
https://eiopa.europa.eu/publications/annual-reports/index.html )
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
---
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.
published today its Annual Report 2012 as requested by EIOPA Founding
Regulation (Article 43.5).
2012 is the second year of EIOPA's work as a European Supervisory
Authority. In the course of this year, EIOPA continued its work in its
seven core areas: regulatory tasks; supervisory tasks; consumer protection
and financial innovation; creation of the common supervisory culture;
financial stability; crisis prevention, management and resolution;
external relations.
Detailed description of EIOPA activities as well as the provisional
Financial Statement and the summary of EIOPA Work Programme 2013 can be
found here: https://eiopa.europa.eu/publications/annual-reports/index.html
(Link:
https://eiopa.europa.eu/publications/annual-reports/index.html )
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
---
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.
woensdag 12 juni 2013
EIOPA PUBLISHES ITS 2013 HALF-YEAR FINANCIAL STABILITY REPORT
The European Insurance and Occupational Pensions Authority (EIOPA)
published today its first half-year report for 2013 on the financial
stability of the insurance and institutions for occupational retirement
provision (IORPs) sectors in the European Economic Area (EEA).
EIOPA observes that the insurance and occupational pensions sectors are
exposed to the risks of financial markets reversals, the impact of low
interest rates and the weak economic fundamentals and outlook that
characterise the risks to financial stability in the EU more generally.
In the life insurance sector, low GDP growth and high unemployment continue
to weigh negatively on premium growth, while non-life insurers report
positive premium growth rates mainly due to mandatory insurance purchases.
In line with EIOPA's call, insurers and supervisors have been responding
to the risk of a prolonged period of low interest rates. Some insurance
companies have started to shift away from fixed and/or life-long
guarantees toward less rigid guarantees in order to reduce reinvestment
risk. Others are making a strategic shift towards other non-guaranteed
product types. Supervisors continue to engage with firms and to perform
targeted exercises aimed at identifying vulnerabilities and appropriate
supervisory tools.
In the reinsurance market, underwriting capacity continues to outgrow
demand. Reinsurance undertakings showed a good operating performance
benefiting from a capital inflow to the sector with investors looking for
stable returns in volatile markets. Losses from natural catastrophes
remained significantly lower in 2012 than in 2011 and 2005, the worst
years ever for the reinsurance industry. So far in 2013, the costliest
events in Europe have been the series of earthquakes in Italy´s Emilia
Romagna region in May. In addition, a hard winter season affected some
European countries which experienced heavy snowfall, high winds, ice and
flooding. The wintry weather caused economic losses estimated about 1.4bn
euros. The more recent flooding in Europe will also generate significant
losses, but it is too early to have firm estimates on their scale.
In the occupational pensions sector, the shift from defined benefit schemes
towards defined contribution or hybrid schemes continued. This rebalancing
reflects a range of factors, including a response to changes in longevity,
regulatory changes and developments in the tax treatment of pension
schemes in some jurisdictions.
The text of EIOPA 1st half-year Financial Stability Report 2013 can be
found here (Link:
https://eiopa.europa.eu/publications/financial-stability/index.html ).
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
---
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.
published today its first half-year report for 2013 on the financial
stability of the insurance and institutions for occupational retirement
provision (IORPs) sectors in the European Economic Area (EEA).
EIOPA observes that the insurance and occupational pensions sectors are
exposed to the risks of financial markets reversals, the impact of low
interest rates and the weak economic fundamentals and outlook that
characterise the risks to financial stability in the EU more generally.
In the life insurance sector, low GDP growth and high unemployment continue
to weigh negatively on premium growth, while non-life insurers report
positive premium growth rates mainly due to mandatory insurance purchases.
In line with EIOPA's call, insurers and supervisors have been responding
to the risk of a prolonged period of low interest rates. Some insurance
companies have started to shift away from fixed and/or life-long
guarantees toward less rigid guarantees in order to reduce reinvestment
risk. Others are making a strategic shift towards other non-guaranteed
product types. Supervisors continue to engage with firms and to perform
targeted exercises aimed at identifying vulnerabilities and appropriate
supervisory tools.
In the reinsurance market, underwriting capacity continues to outgrow
demand. Reinsurance undertakings showed a good operating performance
benefiting from a capital inflow to the sector with investors looking for
stable returns in volatile markets. Losses from natural catastrophes
remained significantly lower in 2012 than in 2011 and 2005, the worst
years ever for the reinsurance industry. So far in 2013, the costliest
events in Europe have been the series of earthquakes in Italy´s Emilia
Romagna region in May. In addition, a hard winter season affected some
European countries which experienced heavy snowfall, high winds, ice and
flooding. The wintry weather caused economic losses estimated about 1.4bn
euros. The more recent flooding in Europe will also generate significant
losses, but it is too early to have firm estimates on their scale.
In the occupational pensions sector, the shift from defined benefit schemes
towards defined contribution or hybrid schemes continued. This rebalancing
reflects a range of factors, including a response to changes in longevity,
regulatory changes and developments in the tax treatment of pension
schemes in some jurisdictions.
The text of EIOPA 1st half-year Financial Stability Report 2013 can be
found here (Link:
https://eiopa.europa.eu/publications/financial-stability/index.html ).
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
---
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.
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