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EIOPA has been heavily engaged in the development of the EU single rulebook for insurance, Solvency II. To ensure a consistent and convergent path towards the implementation of the Solvency II regime, avoiding market fragmentation, we issued Guidelines for the preparation of Solvency II. These Guidelines allow supervisors and companies alike to set up structures and get familiar with the new requirements. The Guidelines have been implemented by National Competent Authorities (NCAs) from 1 January 2014 and have been key in our common aim towards consistency.
Following the political agreement on Omnibus II, EIOPA has been developing more than 20 Implementing Technical Standards and over 30 Guidelines that will contribute to the convergent application of Solvency II. Furthermore, we advised the European Commission on the Solvency II delegated acts, namely on the calibration for certain Long-Term Investments, proposing an innovative segmentation of securitizations according to their different risk profile. At the same time, EIOPA has started to put a stronger emphasis on the consistent implementation of the regulatory framework, by focusing more attention on supervisory practices. In this context we have been using a number of tools: participation in the colleges of supervisors, conducting peer reviews, and issuing opinions addressed to NCAs.
EIOPA continued to provide technical advice regarding 3rd countries supervisory regimes, in the context of the Solvency II equivalence decisions. Furthermore, we successfully coordinated the positions of EU insurance supervisors in the context of the development of a Basic Capital Requirement by the International Association of Insurance Supervisors (IAIS).
EIOPA provided extensive advice on the review of the Directive on Institutions for Occupational Retirement Provision (IORPII), strengthening the current Directive in removing barriers to cross border business, a prerequisite for a real Single Market; enhancing governance, defining necessary instruments and powers for supervisors, and improving disclosure arrangements through a pensions benefit statement. EIOPA’s work on a common European measurement of the solvency position of pension funds shows that pension funds have vulnerabilities in different areas, and that such vulnerabilities can and should be addressed. This has reinforced the need to continue working towards a risk based European regulatory regime that reflects economic reality and better protects members and beneficiaries.
EIOPA will put a strong emphasis on the promotion of supervisory convergence by upgrading the quality and consistency of national supervision and strengthening oversight of cross-border groups. EIOPA should be tasked with a coordinating role on insurance matters towards the Single Supervisory Mechanism. This would ensure a more coordinated approach to the supervision of financial conglomerates. As part of a step-by-step approach, consideration should be given to assign to EIOPA an enhanced supervisory role for the largest important cross-border insurance groups.