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On 1st February 2016, European Insurance and Occupational Pensions Authority (EIOPA) launched a Public Consultation on the draft Guidelines on facilitating an effective dialogue between competent authorities supervising insurance undertakings and statutory auditor(s) and the audit firm(s) carrying out the statutory audit of those undertakings that were adopted by the Board of Supervisors.
This final report (Final Report on the proposal for Guidelines on facilitating an effective dialogue between competent authorities supervising insurance undertakings and statutory auditor(s) and the audit firm(s) carrying out the statutory audit of those undertakings) sets out the final text of the Guidelines including the final impact assessment and the resolution of comments received during the public consultation.
For the purpose of strengthening the supervision of insurance and reinsurance undertakings and the protection of policy holders, Directive 2009/138/EC sets out legal requirements on statutory auditors to report promptly any facts which are likely to have a serious effect on the financial situation or the administrative organisation of an insurance or a reinsurance undertaking. However, in addition to the duty to report such information on serious facts and incidents, supervisory tasks can be supported by an effective dialogue between supervisors and statutory auditors and audit firms.
The vast majority of stakeholders fully supported EIOPA's approach to this new requirement of the Audit Regulation and set out the potential mutual benefits for both supervisors and statutory auditors. One can find two areas that stakeholders found difficult to understand: