On 24 September 2015 the Commission Delegated Decision ((EU)/2015/1062) was published confirming equivalence of the solvency and prudential regime for (re)insurers in Switzerland from 1 January 2016. 

For a link to the report, please click here.

EIOPA publish opinion on 3rd country group solvency calculation 

An opinion on approaches by group supervisors to third country capital requirements has been published by EIOPA. This opinion concerns the requirements to be used for calculating group solvency for insurance groups operating in a Solvency II equivalent third country. 

For a link to the speech, please click here.

EIOPA Chairman speaks about dos and don’ts of Solvency II 

The Chairman of EIOPA has expressed his views on the “do’s and don’ts of Solvency II” at a recent conference in Slovenia. The Chairman stated that while there are risks associated with Solvency II, there are also opportunities. The Chairman expressed his opinion that Solvency II is a game changer in situations where supervisors need to move toward risk-based supervision. 

For a link to the speech, please click here.

New Solvency II rules on infrastructure investment by insurers 

The EU has made a number of proposals concerning amendments to the Solvency Rules II. The proposal follows the publication of a final report by EIOPA. The EU has proposed that; 

(i) in order for an asset to constitute a qualifying infrastructure investment, a number of criteria must be satisfied, including:

  • the investment must be made directly in an "infrastructure project entity"; and
  • the cash flows that  the  infrastructure  project  entity generates for investors must be "predictable”.

(ii) Investors must benefit from a contractual framework that provides a high degree of protection. In order to satisfy this requirement there must be:

  • protection against losses arising from termination by the ultimate purchaser of the  infrastructure  project; and
  • sufficient  reserve  funds  or  other financial arrangements to cover the contingency funding and working capital requirements of the project.

For qualifying infrastructure investments in bonds or loans. Further requirements apply. 

For a link to the proposals, please click here.

Solvency II Preparatory Phase Reporting goes "Live" 

The Central Bank is now open to receive formal submissions of Solvency II preparatory phase reporting via their Online Reporting System.  

For a link, please click here.