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Gabriel Bernardino mentioned, at the last EIOPA Conference, that it should be possible to have a Solvency II regime which is simpler. What actions is EIOPA planning to undertake to ensure that a simplified regime is put in place?
EIOPA will closely monitor the application and the implementation of the new framework and will enter into the so-called “ex-post assessment” of the Solvency II regulation. We will assess the different approaches, identify possible gaps as well as redundancies, revise the rules and introduce any relevant changes. Our revision will be based on three principles:
EIOPA’s main objective is to move from regulation to supervision and to ensure convergence among supervisory practices across different Member States. How will this have an impact on the way firms are being supervised in the future?
Indeed, EIOPA’s main strategic focus for the upcoming years is supervisory convergence. Why is supervisory convergence so important? Because it is essential for three fundamental objectives:
Solvency II implementation is driving supervisory convergence in the EU Member States. The National Competent Authorities need to be part of this collective effort to develop a European supervisory culture. Convergence is a journey and implies change and moving away from the status quo. EIOPA plays a key role in this context and provides a clear direction in a rapidly changing landscape.
The industry is concerned about the delay in the final publication by the European Commission of the reporting package in all official languages which is key for SMEs to be able to start preparations. What is your opinion on this issue?
Thanks to the Solvency II Preparatory Phase from 2013 to 2015, which EIOPA initiated, the firms had the time to set up the relevant structures, to get familiar with new requirements, to start the process of enhanced communication with supervisors and in general to use this interim period as a “warm-up” for Solvency II implementation from 1 January 2016 onwards.
EIOPA also communicated at an early stage that the July 2015 Final Report on the reporting package could be used for implementation.
The industry had requested flexibility with regards to the first submission of information foreseen in May 2016. Has EIOPA considered this possibility?
On the one hand, EIOPA is confident that those firms that in the last years were doing their “homework” during the Solvency II Preparatory Phase will be able to comply with the new reporting requirements.
On the other hand, EIOPA wishes to encourage companies to put all the necessary efforts into delivering good quality data for their first submission. All parties alike – EIOPA, national supervisors and firms - are currently taking their last steps to meet this requirement. We are all sitting in the same boat!
The European Commission adopted a new set of Delegated Acts on 30 September 2015 which create a separate infrastructure asset class. Are you confident that it is attractive for insurers to invest in such assets taking into account all the requirements?
We are happy that the European Commission took EIOPA’s advice as a basis for the decision to treat infrastructure investments in a more granular way. The new calibrations will certainly make it easier for insurers to invest in high quality infrastructure.