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"EIOPA has faced many challenges:
First Initiative: Solvency and the International Context
First point - the timetable: During the discussions on the Omnibus II Directive, Parliament and the Council proposed that the Solvency II Directive be applied gradually. The Commission supports this smooth transition: the Member States should transpose the Directive before 1 January 2013, but the new regime would not be fully applicable to businesses until 1 January 2014.
The details of this transition are still to be finalised, but it is clear that it is a plus point enabling insurers, national supervisors and EIOPA to prepare better for the new regime's entry into force.
Second point - calibrating the Solvency II measures: After more than two years of discussions with the Member States, EIOPA and the industry, the Commission is finalising the preparation of the "level 2" implementing measures. Our aim is to ensure that Solvency II does not penalise insurance products of high economic and social value, such as retirement savings schemes, civil-liability insurance and medical insurance. To do this we have examined the results of the fifth Quantitative Impact Study (QIS5) and prepared a set of new proposals aimed at ensuring the viability of long-term guarantee products, eliminating artificial volatility, avoiding pro-cyclical effects and reducing complexity.
Third point - equivalence in third countries: For Europe, Solvency II is an opportunity to encourage third countries to adopt a solvency regime based on the risks to insurers. EIOPA has just completed its assessment of the solvency regimes applicable in Switzerland, Japan and Bermuda. Our aim is not to have third countries adopt a regime identical to Solvency II. But equivalence is in the mutual interest of the EU and third countries, since it will streamline cross-border activities by insurance and reinsurance companies and alleviate the burden on groups which operate internationally.
The Omnibus II Directive is intended to introduce a transitional regime for equivalence with Solvency II. Many third countries have already taken measures to adopt a risk-based regime without yet being able to meet the equivalence criteria. The Commission is determined to work with them.
Second initiative: The revision of the Directive on Institutions for Occupational Retirement Provision
The financial crisis has made the situation worse for pension systems, which were already faced with the long-term challenge of the ageing population. We must launch a general discussion on pensions to ensure that our retirement systems are adequate and sustainable. To this end we are about to publish, with Commissioners Andor and Rehn, a White Paper based on the many suggestions gathered by the consultation following the Green Paper on pensions.
The Directive on Institutions for Occupational Retirement Provision, adopted in 2003, laid the foundations for a single market for occupational pensions by allowing pension funds to offer their services beyond national borders. Despite this, there are still very few cross-border pension funds. We therefore intend to revise the Directive to enable employers to reap the full benefits of the single market.
Now is the time to build a modern and innovative system founded on risk management, corporate governance and effective supervision, inspired by the Solvency II Directive and taking into account the special characteristics of institutions for occupational retirement provision. The Commission proposal, to be submitted at the end of 2012, will have the advantage of a technical opinion from EIOPA, which is expected in mid-February.
I should also like to take this opportunity to pay tribute to EIOPA's work, which produces contributions of very high quality, sometimes with very tight deadlines.
Third major initiative: The revision of the Insurance Mediation Directive
Despite the single passport for insurers and intermediaries, we face the challenge of a highly fragmented European insurance market. We must strengthen and harmonise the rules on consumer protection. The revision of the Insurance Mediation Directive, which we expect to submit in early 2012, should facilitate cross-border trade, enhance consumer confidence and improve the stability of the financial markets.
The revision of this Directive will level the playing field between the various sellers of insurance products: not only insurance companies, but also banks, brokers, car hire firms and travel agents. The Directive will also give a European passport to those providing specific services linked to insurance, such as claims assessments.
The new Directive will also bring significant improvements to consumer protection standards, particularly where sales of life assurance products combined with packaged retail investment products (PRIPs) are concerned. On this subject, the provisions of the new Directive will reflect the rules we have just introduced with the revision of the MIFID Directive."