The Senior Executive Accountability Regime: Our Expectations of Firms - Director General Derville Rowland
EIOPA launches call for research proposals
The European Insurance and Occupational Pensions Authority (EIOPA) has launched a call for research proposals in the following areas:
- investment allocations of insurers and pension funds
- liquidity stress testing in the insurance sector
- early warning systems in insurance
- systemic relevance of insurance sector and its interlinkages with financial and real sectors
- economic valuation of insurers' liabilities; best estimate and risk margin
Proposals are invited until 15 December 2019.
EIOPA consults on technical advice for the 2020 review of Solvency II
On 15 October 2019, EIOPA launched a public consultation on an opinion that sets out technical advice for 2020 Solvency II review. This opinion, due to be published in June 2020, will follow on from EIOPA's call for advice of 11 February 2019. Topics covered broadly include the review of the long-term guarantee measures, the introduction of new regulatory tools in the Solvency II Directive and revisions to the existing Solvency II framework. Stakeholders have until 15 January 2020 to submit their responses.
EIOPA identifies consumer protection issues in travel insurance and issues a warning to the travel insurance industry
On 9 October 2019, EIOPA published its Thematic Review on Consumer Protection Issues in Travel Insurance. As part of the review, EIOPA issued a questionnaire to 201 insurance undertakings operating in 29 European countries. Key findings include (among other matters):
- high commission levels derived from problematic business structures
- poor value for money and poor value products
- increased conduct risks and the exclusion of pre-existing medical conditions from travel insurance coverage
As a result, EIOPA issued a warning to the travel insurance industry outlining the expectation that market participants fully comply with the IDD.
EIOPA launches field test on revised and new templates under Solvency II reporting and disclosure review 2020
On 9 October 2019, EIOPA launched a field test on the revised and newly proposed templates relating to Solvency II. This is an opportunity for undertakings, of any size, to assess the templates and report any questions and issues. Contributions are welcome until 31 January 2020.
EIOPA published updated technical documentation and parallel publication of the monthly calculation of the technical information related to the risk-free interest (RFR) term structure
EIOPA has published updated technical documentation of the methodology to derive EIOPA's risk free interest rate term structures. This will be effective from 1 January 2020. In the interim, EIOPA will continue to use Refinitiv as the main source for the RFR production process.
EIOPA publishes first parallel calculation for Solvency II relevant risk free interest rate term structures
On 8 October 2019, EIOPA published the first parallel calculation on the relevant risk free interest rate term structures with reference to the end of September 2019 based on Refinitiv data and an updated source code used for the monthly risk-free interest rate term structures calculation. EIOPA will publish such calculations on a monthly basis until January 2020.
Keynote speech mobility and motor insurance: an evolving landscape
On 16 October 2019 Gabriel Bernardino, Chairman of EIOPA, gave a keynote speech on the evolving landscape of the mobility and motor insurance industry. During his address, Mr Bernardino explained that not only must regulation adapt in order to keep up to date, the sector must also keep in mind principles of digital responsibility and the importance of balancing the positives and risks that innovation brings.
National competent authorities comply or intend to comply with EIOPA’s recommendations to the insurance sector on UK withdrawal from EU
On 31 October 2019, EIOPA published responses from national competent authorities on their compliance, intention to comply or non-compliance with EIOPA's "Recommendations for the insurance sector in light of the United Kingdom withdrawing from the EU". All national competent authorities in the EEA comply or intend to comply with most of the recommendations. The goal of the recommendations is to minimise detriment to policyholders in the event that the United Kingdom and European Union do not enter into a withdrawal agreement.