27 March 2013

EIOPA consults on Guidelines for the preparation of Solvency II

There are four consultation papers:

• CP-13/008: Consultation Paper on the Proposal for Guidelines on System of Governance, including Impact Assessment
• CP-13/009: Consultation Paper on the Proposal for Guidelines on Forward Looking assessment of the undertaking’s own risks (based on the ORSA principles), including Impact Assessment
• CP-13/010: Consultation Paper on the Proposal for Guidelines on submission of information to national competent authorities, including Impact Assessment
• CP-13/011: Consultation Paper on the Proposal for Guidelines On Pre-application for Internal Models, including Impact Assessment

It is up to NCAs to determine how to comply with EIOPA’s Guidelines by incorporating them into their regulatory or supervisory framework in an appropriate manner. NCAs are expected to ensure that insurance companies and groups take active steps towards implementing the relevant aspects of the regulatory framework addressed in these Guidelines, so that when Solvency II is applicable, its requirements can be fully complied with. However, EIOPA makes it clear that the Guidelines should be applied in a proportionate way and in particular with regard to the burden on small and medium size undertakings.

The public consultation will end on 19 June, 2013. EIOPA intends subsequently to publish the final Guidelines in the autumn of this year. This should allow NCAs to put in place certain important aspects of the preparation for Solvency II starting on 1 January, 2014.

Gabriel Bernardino, Chairman of EIOPA, said: “These Guidelines are an important step towards consistent and effective supervisory practices in the preparation for the Solvency II implementation. They will play a fundamental role in supporting the good function of the internal market in the insurance sector and will ensure a higher quality of information. We welcome all contributions from the different stakeholders.”

Press release

EIOPA-Consultation-Papers

“I still believe that it is possible, if everything goes right, to have the date of implementation of Jan 1, 2016”, Bernardino told journalists on a conference call from Frankfurt today. He added that EIOPA still hasn’t received a timetable from the European Union.

Further reporting from Bloomberg

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