The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) issued its sixth consultation paper dealing with the possible need for amendments to the Directive on the Supplementary Supervision of Insurance Undertakings in an Insurance Group.
In a survey conducted among the coordination committees (Co-Cos) it appears that more efficiency in the exercise of the supplementary supervision is needed. One suggestion to promote Co-Cos to appoint a Lead Supervisor would be to make the process more transparent. The majority of the CEIOPS Members believe that no change in the Insurance Groups Directive (IGD) is currently necessary. However, some Members do support aligning the IGD with the Financial Conglomerates Directive with regard to the introduction of a coordinator responsible for most aspects of supplementary supervision.
CEIOPS recommends that the IGD introduces an option for supervisors involved in a Co-Co to ask for a reorganisation of third country groups, e.g. by introducing a holding company situated within the EEA. The further details on the decision making process should be dealt with at Level 3.
CEIOPS considers that, even though it would probably be complex, a general guideline for crisis situation should be worked out within each Co-Co. One solution could be to consider restricting an amendment of the IGD to add a general obligation for supervisors to inform other relevant supervisors of a crisis or an emerging crisis in a group or in a company belonging to a group. It could then be left to CEIOPS to develop a more comprehensive definition of what or which cases represent a crisis, and how and when notification to other supervisors is needed.
The Directive states that not later than 1 January 2006 the Commission shall submit to the Insurance Committee a report on its application and if necessary, on the need for further harmonisation. In this view CEIOPS has prepared, on the basis of the actual supervisory experience of its Members, a draft report aimed at giving input to the European Commission.
Comments should be send to CEIOPS until 3 June 2005.
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