The European Insurance and Occupational Pensions Authority (EIOPA)
published today the Technical Report on Standard Formula Design and
Calibration for Certain Long-Term Investments.
The Report was prepared upon the request of the European Commission. In
view of the current economic situation, its purpose was to examine whether
the capital requirements for certain long-term investments under Solvency
II can be reduced without jeopardising the prudential nature of the
regime.
The key proposal of EIOPA is to introduce a more granular treatment of
securitisations. Instead of the currently proposed uniform 7% spread risk
charge for AAA-rated securitisations, EIOPA recommends to decrease the
charges for less risky issues to 4.30% while increasing them for riskier
ones to 12.50%.
For identifying less risky securitisations EIOPA has developed a set of
criteria related to the structure of securitisation, the quality of the
underlying assets, the underwriting processes and the transparency for
investors.
The Report alsoconfirms the currently proposed risk charges for a number of
investments including private equity, loans to small and medium sized
enterprises and socially responsible investments.
The study was conducted with the input from a range of experts from
industry, regulatory bodies and the academic world. In the course of the
research EIOPA was confronted with a challenge that is typical for the
assets analysed - the lack of comprehensive, reliable and publicly
available performance data (especially for infrastructure investments).
The Authority intends to work on closing these data gaps in cooperation
with the relevant parties.
Click here to access the Report: "Discussion paper on Standard Formula
Design and Calibration for Certain Long-Term Investments
(Link:
https://eiopa.europa.eu/consultations/consultation-papers/2013-closed-consultations/april-2013/discussion-paper-on-standard-formula-design-and-calibration-for-certain-long-term-investments/index.html
)"
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donderdag 19 december 2013
dinsdag 17 december 2013
EIOPA publishes its final draft implementing technical standards on reporting of national provisions of prudential natu
The European Insurance and Occupational Pensions Authority (EIOPA)
published today its final draft implementing technical standards (ITS) on
reporting of national provisions of prudential nature in the field of
occupational pension schemes.
The ITS promotes transparency and comparability of national provisions and
helps to promote cross-border activity of IORPs.
For the first time all information of prudential nature from a wide range
of sources across the EU will be centralised in one place and made
available to European citizens, particular adding value to professionals
working on cross-border schemes.
The Final Report which includes the text of the ITS itself can be viewed on
the EIOPA website:
https://eiopa.europa.eu/fileadmin/tx_dam/files/consultations/consultationpapers/CP05-12/Final_report_on_draft_ITS_on_reporting_of_national_provisions_of_prudential_nature_CP-12-005.pdf
(Link:
https://eiopa.europa.eu/fileadmin/tx_dam/files/consultations/consultationpapers/CP05-12/Final_report_on_draft_ITS_on_reporting_of_national_provisions_of_prudential_nature_CP-12-005.pdf
)
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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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 final draft implementing technical standards (ITS) on
reporting of national provisions of prudential nature in the field of
occupational pension schemes.
The ITS promotes transparency and comparability of national provisions and
helps to promote cross-border activity of IORPs.
For the first time all information of prudential nature from a wide range
of sources across the EU will be centralised in one place and made
available to European citizens, particular adding value to professionals
working on cross-border schemes.
The Final Report which includes the text of the ITS itself can be viewed on
the EIOPA website:
https://eiopa.europa.eu/fileadmin/tx_dam/files/consultations/consultationpapers/CP05-12/Final_report_on_draft_ITS_on_reporting_of_national_provisions_of_prudential_nature_CP-12-005.pdf
(Link:
https://eiopa.europa.eu/fileadmin/tx_dam/files/consultations/consultationpapers/CP05-12/Final_report_on_draft_ITS_on_reporting_of_national_provisions_of_prudential_nature_CP-12-005.pdf
)
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.
donderdag 12 december 2013
EIOPA updates on financial stability in (re)insurance and occupational pensions sector
The European Insurance and Occupational Pensions Authority (EIOPA)
publishes its Financial Stability Report December 2013 (Link:
https://eiopa.europa.eu/publications/financial-stability/eiopa-second-half-year-financial-stability-report-2013/index.html
) with the updates on financial stability in the (re)insurance and
occupational pension sectors in the European Economic Area (EEA).
EIOPA observes that economic conditions in European countries are still
fragile and that both insurance and occupational pension sectors continue
to face three main prominent risks – a prolonged low yield environment,
a weak macroeconomic climate and a possible contagion risk arising from
exposure to sovereigns and financial institutions.
In the insurance sector, the weak macroeconomic climate and low yield
environment has resulted in sales' constraints and is prompting firms to
seek growth opportunities by establishing new business in regions such as
Latin America or South-Eastern Asia.
Moreover, as a reaction to the low yield environment, undertakings are
retreating from guaranteed life products and focusing on unit-linked
products and products with more flexible guarantee structures. This
expected change in the mix of business needs to be closely monitored to
ensure a proper balance between stability of firms and policyholders'
interests.
Overall, Solvency I capital levels for life and non-life insurers are
dropping, but remain well above the 100% minimum requirement.
The global reinsurance sector continued its robust growth. Major loss
events from natural catastrophes in the first half of 2013 seem to be
relatively low compared to previous years. Profitability for the
reinsurance sector has been sustained, but remains under pressure due to
the low yield environment. Issuance of Insurance-Linked Securities (ILS)
reached its highest level since 2007, with large capital inflows across
the sector. As a result global reinsurer capital increased to an all-time
high. The availability of so much reinsurance capacity creates a strong
competitive environment. Developments in ILS also need close monitoring by
supervisors as the extensive usage of ILS tends to cloud the picture in
terms of understanding the risk transfer.
In the occupational pension sector, defined benefit schemes still dominate,
but the sustained shift towards defined contribution schemes in many
countries continues. Investment allocation of pension funds has been
fairly stable over time. However, the low interest rate environment makes
it more difficult for defined benefit schemes to meet the guaranteed
return.
EIOPA's econometric modelling demonstrates a strong link between the
macroeconomic environment and insurance business. Furthermore, EIOPA's
quantitative analysis clearly shows that premium growth in life insurance
would be hit strongly under any adverse macroeconomic scenario.
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.
publishes its Financial Stability Report December 2013 (Link:
https://eiopa.europa.eu/publications/financial-stability/eiopa-second-half-year-financial-stability-report-2013/index.html
) with the updates on financial stability in the (re)insurance and
occupational pension sectors in the European Economic Area (EEA).
EIOPA observes that economic conditions in European countries are still
fragile and that both insurance and occupational pension sectors continue
to face three main prominent risks – a prolonged low yield environment,
a weak macroeconomic climate and a possible contagion risk arising from
exposure to sovereigns and financial institutions.
In the insurance sector, the weak macroeconomic climate and low yield
environment has resulted in sales' constraints and is prompting firms to
seek growth opportunities by establishing new business in regions such as
Latin America or South-Eastern Asia.
Moreover, as a reaction to the low yield environment, undertakings are
retreating from guaranteed life products and focusing on unit-linked
products and products with more flexible guarantee structures. This
expected change in the mix of business needs to be closely monitored to
ensure a proper balance between stability of firms and policyholders'
interests.
Overall, Solvency I capital levels for life and non-life insurers are
dropping, but remain well above the 100% minimum requirement.
The global reinsurance sector continued its robust growth. Major loss
events from natural catastrophes in the first half of 2013 seem to be
relatively low compared to previous years. Profitability for the
reinsurance sector has been sustained, but remains under pressure due to
the low yield environment. Issuance of Insurance-Linked Securities (ILS)
reached its highest level since 2007, with large capital inflows across
the sector. As a result global reinsurer capital increased to an all-time
high. The availability of so much reinsurance capacity creates a strong
competitive environment. Developments in ILS also need close monitoring by
supervisors as the extensive usage of ILS tends to cloud the picture in
terms of understanding the risk transfer.
In the occupational pension sector, defined benefit schemes still dominate,
but the sustained shift towards defined contribution schemes in many
countries continues. Investment allocation of pension funds has been
fairly stable over time. However, the low interest rate environment makes
it more difficult for defined benefit schemes to meet the guaranteed
return.
EIOPA's econometric modelling demonstrates a strong link between the
macroeconomic environment and insurance business. Furthermore, EIOPA's
quantitative analysis clearly shows that premium growth in life insurance
would be hit strongly under any adverse macroeconomic scenario.
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.
maandag 9 december 2013
Good supervisory practices for knowledge and ability of distributors of insurance products
The European Insurance and Occupational Pensions Authority (EIOPA) has
published today a Report (Link:
https://eiopa.europa.eu/publications/reports/index.html )on good
supervisory practices regarding knowledge & ability of distributors of
insurance products.
The Report sets out good supervisory practices in the form of high-level
principles that competent authorities should 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:
• Appropriate knowledge (e.g. about legal aspects, consumer protection
requirements, tax regimes, markets and products) and ability (e.g. about
risk perception, underwriting process, claims procedures) for
distributors.
• Demonstration of ethical and professional conduct at all times, for
instance to consider the best interest of the consumer in circumstances
connected to the contract.
• Effective communication to the consumer regarding terms and conditions
of the contract, complaints-handling, risks and rewards of a strategy or
product, by using clear and comprehensible language.
• Provision of suitable and/or personalised recommendations and
adaptation of these to the evolving consumer situation and need.
EIOPA considers it good supervisory practice for a competent authority to
ensure there is appropriate oversight of continuous professional
development.
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 a Report (Link:
https://eiopa.europa.eu/publications/reports/index.html )on good
supervisory practices regarding knowledge & ability of distributors of
insurance products.
The Report sets out good supervisory practices in the form of high-level
principles that competent authorities should 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:
• Appropriate knowledge (e.g. about legal aspects, consumer protection
requirements, tax regimes, markets and products) and ability (e.g. about
risk perception, underwriting process, claims procedures) for
distributors.
• Demonstration of ethical and professional conduct at all times, for
instance to consider the best interest of the consumer in circumstances
connected to the contract.
• Effective communication to the consumer regarding terms and conditions
of the contract, complaints-handling, risks and rewards of a strategy or
product, by using clear and comprehensible language.
• Provision of suitable and/or personalised recommendations and
adaptation of these to the evolving consumer situation and need.
EIOPA considers it good supervisory practice for a competent authority to
ensure there is appropriate oversight of continuous professional
development.
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 4 december 2013
EIOPA issues Consumer Trends Report
Lack of, or even misleading disclosure of information, poor advice given to
consumers, and consumers focussing more on the price than the protection
provided by the product. These are high level trends identified by
EIOPA's Consumer Trends Report. The Report also indicates some
practices by insurers or intermediaries such as unilateral changes in the
terms in policies.
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.
consumers, and consumers focussing more on the price than the protection
provided by the product. These are high level trends identified by
EIOPA's Consumer Trends Report. The Report also indicates some
practices by insurers or intermediaries such as unilateral changes in the
terms in policies.
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.
dinsdag 3 december 2013
EIOPA has issued Guidelines on complaints-handling by insurance intermediaries
The European Insurance and Occupational Pensions Authority (EIOPA) has
issued today Guidelines on complaints-handling by insurance
intermediaries. The Guidelines set down guidance on appropriate internal
systems and control for complaints-handling, the provision of information
and procedures for responding to complaints. The Guidelines, which lay
down high-level principles for National Competent Authorities (NCAs), are
supplemented by a Report on best supervisory practices.
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.
issued today Guidelines on complaints-handling by insurance
intermediaries. The Guidelines set down guidance on appropriate internal
systems and control for complaints-handling, the provision of information
and procedures for responding to complaints. The Guidelines, which lay
down high-level principles for National Competent Authorities (NCAs), are
supplemented by a Report on best supervisory practices.
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.
Opinion on insurance policies paid out where due
EIOPA considered that many member states do not have in place proper
arrangements to make sure that life insurance policies are paid out to the
beneficiaries where due. EIOPA recommends that National supervisory
Authorities should facilitate with the establishment of national
arrangements for life insurance policies that will ensure that
beneficiaries' benefits do not remain unclaimed.
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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If you forgot your password, you will find a link to receive a new
password on the login page of the EIOPA Restricted Area.
arrangements to make sure that life insurance policies are paid out to the
beneficiaries where due. EIOPA recommends that National supervisory
Authorities should facilitate with the establishment of national
arrangements for life insurance policies that will ensure that
beneficiaries' benefits do not remain unclaimed.
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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