The issues paper aims to help improve stakeholders’ understanding of how supervisors will assess the types of information they receive from insurers and how supervisors should use the information received to prioritise actions to ensure policyholder protection under the new risk-based regime.

The issues paper covers some of the main components of Pillars 2 (supervisory risk) and 3 (public disclosure) of the Solvency II regime. The paper presents CEIOPS' current thinking on how supervisory reporting requirements and disclosure can be converged across European insurers.

Supervisory methods considered in this issues paper include a supervisory preliminary assessment, an assessment of the general financial environment, an overview of the undertaking's business and performance, an assessment of quantitative requirements such as all sources of prudential risk and the adequacy of the undertaking’s capital and an assessment of an undertaking’s system of governance.

The paper contains three sections which examine:

  • Details of the framework which will converge the supervisory review process through which insurance supervisors will be able to assess and monitor likely risks to policyholders.
  • Details of the information analysis that will be required to evaluate the strategies, reporting procedures and processes set up by insurers.
  • Details of the likely quantitative and narrative reporting requirements under Solvency II.

The development of a convergent framework for the supervision of insurers will be an essential part of the harmonisation of the European insurance market and a unified approach to policyholder protection.

For further information: CEIOPS publish issues paper on Supervisory Review Process and Undertakings’ Reporting Requirements