On 8 December, EIOPA published a Discussion Paper on the Review of Specific Items in the Solvency II Delegated Regulation focusing on the Solvency Capital Requirement (SCR) standard formula. By way of background, in July 2016 the European Commission issued a Call for Advice on this topic and EIOPA has published this discussion paper as a first step towards preparing its response. Ensuring the insurance sector has a proportionate but technically robust, risk-sensitive and consistent supervisory regime is the aim of the review process and as part of this process, EIOPA has undertaken a project to review the Delegated Regulations (EU) 2015/35.
The discussion paper outlines in detail key sub-modules of the SCR standard formula such as life and non-life underwriting risks, catastrophe risks, counterparty default risk, risk margins and own funds. EIOPA is consulting on these sub-modules as well as seeking the views of stakeholders on the overarching aspects of the SCR standard formula. During 2017 policy options will be discussed with relevant stakeholders at roundtable discussions.
The consultation period ends on 3 March 2017 and the response to the European Commission will be submitted by February 2018.
A link to the discussion paper is here.