08 June 2009

CEIOPS Annual Report 2008 and Work Programme 2009

The document provides a comprehensive overview of CEIOPS achievements in 2008 and an outline of CEIOPS objectives for the current year. Solvency II deliverables will cover all three pillars of the Solvency II framework as well as group issues.

The document provides a comprehensive overview of CEIOPS achievements in 2008 and an outline of CEIOPS objectives for the current year.

 

Solvency II deliverables will cover all three pillars of the Solvency II framework as well as group issues.

 

Solvency II – Quantitative requirements (Pillar 1)

CEIOPS will advise on the valuation of technical provisions, the valuation of assets and liabilities other than technical provisions, the assessment and classification of own funds and the design of the standard formula for the calculation of the SCR and the MCR. CEIOPS will also provide advice on the approval process and technical standards for internal models. The advice will be submitted for consultation in Spring and Summer 2009.

 

Solvency II – Qualitative requirements (Pillars 2 and 3)

A number of issues relating to Pillars 2 and 3 are interconnected. Level 3 guidance on the Review Process, Level 2 advice and Level 3 guidance on common reporting formats will be developed using CEIOPS’ Issues paper on the supervisory review process and reporting to supervisors, published in August 2008. Detailed reporting and disclosure formats will be addressed at Level 3. There will also be Level 2 advice and Level 3 guidance on governance and Level 3 guidance on the own risk and solvency assessment, based on CEIOPS’ Issues papers which were published in 2008.

 

Solvency II and Group issues

By October 2009, CEIOPS will prepare its advice to the European Commission on the calculation of the group SCR, taking into consideration the diversification effects, fungibility and the transferability of capital. If appropriate, further detailed advice to the European Commission will be prepared in relation to the co-ordination, co-operation and the exchange of information between supervisors. Parallel work will involve preparatory work for Level 2 advice and/or Level 3 guidance on risk concentration and intra-group transactions; on the co-ordination between supervisory authorities of enforcement measures; on issues related to insurance groups that have either their parent undertaking or subsidiaries in a non-EU country; and on national and regional sub-group supervision.

 

Group issues under the current Insurance Group Directive

The supervision of cross-border insurance groups under the current regulatory framework will be a priority in 2009. CEIOPS will continue to focus on convergence of supervisory practice and co-operation, in order to minimise the supervisory burden on insurance groups.

 

CEIOPS will also start work on the design of a Risk Assessment System for insurance groups.

 

Occupational pensions

In 2009, CEIOPS will continue to focus on enhancing convergence of supervisory practices in relation to cross-border IORPs. The work will be carried out in three main strands: an experience-based review of the Budapest Protocol; a follow up to the recommendations of CEIOPS’ report on key aspects of the implementation of the IORP Directive; and further work on solvency issues for IORPs.

 

Financial Stability and crisis management

CEIOPS will continue to report on financial conditions and financial stability in the EU insurance, reinsurance and pension funds sectors, as well as on the financial conditions and financial stability of European financial conglomerates as mandated

by the EFC – FST.

CEIOPS will also continue to monitor the exposure of the insurance and occupational pensions sectors to risky investments and to analyse the implications of the financial crisis for these two sectors.

 

Convergence

CEIOPS will continue to develop a European supervisory culture and effective tools to increase supervisory co-operation and convergence in both insurance and the occupational pensions sectors.

 

Annual Report 2008 and Work Programme 2009

 

© CEIOPS