On 9 September, the Chairman of EIOPA delivered a speech entitled ‘Globally Under Pressure?’ at the 4th Conference on Global Insurance Supervision in Frankfurt, Germany.
Mr Bernardino stated that the focus of the conference was threefold: recovery and resolution in insurance; international capital standards; and conduct risks. In respect of recovery and resolution, he noted that there are a number of potential risks to the insurance sector and that it was important for the insurance industry to create a specific recovery framework which could be implemented in the event of the failure of an insurer.
In relation to capital standards, Mr Bernardino expressed his view that a single unified international standard in respect of capital requirements should be the ultimate goal. Finally, with regards to conduct risks, he noted that EIOPA is putting in place a ‘Strategic Approach’ in order to create a structure for the supervision of conduct of business which will be both risk-based and contain preventive measures for conduct of business supervision.
A link to the speech is here.