The European Insurance and Occupational Pensions Authority (EIOPA) published a speech on the implementation of Solvency II, delivered by Dr Manuela Zweimueller (Head of Regulations of EIOPA) on 6 September 2016. The speech focuses on the initial implementation of Solvency II, future changes in implementing Solvency II and key areas to focus on in the future.
‘Looking back to look ahead’ was the theme chosen by EIOPA to take stock of Solvency II implementation thus far whilst also expanding on the key work streams which EIOPA shall be focusing upon in the near future and which will therefore require the ongoing commitment and cooperation of national competent authorities as well as the insurance sector. EIOPA’s core areas of focus for the ongoing implementation and monitoring of Solvency II can be summarized as follows:
- developing a converged Supervisory Handbook, setting out risk-based supervisory good practices covering different areas of Solvency II;
- carrying out another round of insurance stress tests;
- reinforcing a robust risk culture, predominantly using the ORSA;
- continuously evolving the regime’s disclosure element to inform the market and foster transparency;
- enhancing policyholder protection through the adoption of a consumer-centric approach;
- conducting a rigorous, evidence-based and transparent review of Solvency II, assessing cumulative effects and unintended consequences and privileging principles like simplicity and proportionality;
- conducting a review of the SCR Standard Formula; and
- maintaining under review the macro-prudential consequences of the Solvency II regime.
The full EIOPA speech can be read here.