In the September edition of “Solvency II Matters,” the Central Bank reports that the Insurance Supervision Directorate is being reorganised in preparation for the new Solvency II supervisory landscape. A single supervisory division with responsibility for all firms will be established. It will also have responsibility for on-site inspections of firms going forward. A separate Advisory, Analytics and Actuarial Division will be established with oversight for the actuarial services, prudential analytics and supervisory strategy and projects teams.
In the context of implementation of Solvency II, all re(insurers) will be issued a draft set of conditions of authorisation with a 21 day review period to submit comments. Each re(insurer) will also be given a new certificate of authorisation.
From 1 January 2016, a new PCF ‘Head of Actuarial Function’ will replace existing PCF positions of Chief Actuary and Signing Actuary. The Central Bank notes that EIOPA Guidance indicates that the focus of external audits should be on the balance sheet, own funds and capital requirements. The Central Bank recognises that an appropriate lead-in time will be needed to discuss external audit requirements for regulatory returns for the period ending 31 December 2016.
In an update on reporting, the Central Bank notes nine of the eleven Prudential National Specific Templates (NSTs) are now available to view or download on the Central Bank’s website. The Statistical NSTs also are available. The Central Bank lists the three elements required from insurers to fulfil future reporting requirements including the introduction of Solvency II quantitative reporting templates, the Statistical NSTs (required to translate supervisory data into macro-economical statistical updates) and the Prudential NSTs (which only applies to high impact and variable annuity firms).
Examples of good practice in the context of internal modelling are included in the newsletter and firms are referred to the EIOPA Guidelines on the use of internal models for further guidance.
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