EIOPA: US insurance dialogue outlines the way forward
21 December 2012
After a year of intense discussions examining how to facilitate the business environment, increase consumer protection and contribute to more efficient supervision, seven common objectives were agreed, which will be further specified in a detailed project plan of activities to be developed in 2013.
The Steering Committee of the EU+US Dialogue Project today agreed on the common objectives and initiatives to be pursued over the next 5 years.
At the meeting hosted by EIOPA in Frankfurt the parties discussed the Way Forward based on the factual report released for consultation earlier this year which summarised the key commonalities and differences between the regimes for insurance regulation and supervision on both sides of the Atlantic.
The high level common objectives of the EU+US insurance dialogue are to:
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promote the free flow of information between EU and US supervisors under conditions of professional secrecy;
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establish a robust regime for group supervision, which would include a clear allocation of tasks, responsibilities and authority amongst supervisors, a holistic approach to the determination of the solvency and financial condition of the group, greater cooperation and coordination of supervisors within colleges and efficient enforcement measures;
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further develop an approach to valuation which more accurately reflects the risk profile of companies and capital requirements that are fully risk+based
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work to achieve a consistent approach within each jurisdiction and examine the further reduction and possible removal of collateral requirements in both jurisdictions; pursue greater coordination in relation to the monitoring of the solvency and financial condition of solo entities and groups through the analysis of supervisory reporting;
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ensure the consistent application of prudential requirements and commitment to supervisory best practices through different peer review processes that ensure an independent view of the jurisdiction being examined; and ensure consistency and effectiveness in the supervision of solo entities and groups.
Gabriel Bernardino, Chairman of EIOPA, said: “The objectives and the initiatives agreed, pave the way for further mutual understanding and future convergence between the EU and the US on insurance regulation and supervision. We look forward to continue to work with the US colleagues on this process and we are committed to achieve concrete outcomes that will facilitate the business environment, increase consumer protection and contribute to more efficient supervision”.
Kevin McCarty, President of the NAIC, noted: “I believe we have achieved a greater mutual understanding of our respective solvency systems, through the EU+US Dialogue Project, and we look forward to collaborating on the various initiatives agreed to by the Steering Committee. The Way Forward plan reflects our best efforts to identify key areas for enhancement and possible alignments between our solvency approaches. These efforts should lead to more efficient and effective regulatory oversight and increased policyholder protection".
Press release
Full Way Forward Document
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