EIOPA Issues Its First Solvency II Guidelines in the Official EU Languages
The European Insurance and Occupational Pensions Authority (EIOPA) has issued Set 1 of its Solvency II Guidelines in the official languages of the European Union.
The Guidelines cover the following aspects:
- Valuation of Technical provisions and Contract Boundaries;
- Ancillary Own Funds, Classification of Own Funds; Ring Fenced Funds and Treatment of related undertakings;
- Look-through approach; Basis Risk; Application of Outwards Reinsurance arrangements; Treatment of market and counterparty risk; Application of the life underwriting risk; Health catastrophe risk; Loss Absorbing Capacity of technical provisions and Undertaking Specific Parameters;
- Group Solvency;
- Application of Internal Models;
- Operational functioning of Colleges of Supervisors;
- Methodology for Equivalence assessments;
- Supervisory Review Process.
EIOPA Guidelines are addressed to National Competent Authorities (NCAs) or Financial Institutions. Their aim is to ensure common, uniform and consistent application of Union law as well as to establish consistent, efficient and effective supervisory practices drafted by EIOPA in accordance with Article 16 of the Regulation establishing EIOPA.
The Guidelines are in line with the Solvency II Directive and Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 (Delegated Acts), which the Guidelines are aiming to clarify.
In accordance with Article 16 (3) of the EIOPA Regulation, NCAs have to confirm whether they comply or intend to comply with the Guidelines within 2 months of the issuance date.
The Guidelines can be viewed here