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With this consultation European Insurance and Occupational Pensions Authority (EIOPA) starts an important process of the post-evaluation of Solvency II as foreseen in the Directive and its Delegated Acts. The objectives of this review process in the context of the Solvency Capital Requirement (SCR) standard formula are to ensure a proportionate and technically robust, risk-sensitive and consistent supervisory regime for insurance sector and to propose possible simplifications.
Therefore, EIOPA is consulting on overarching aspects of the SCR standard formula and solicit stakeholder feedback on key sub-modules such as life and non-life underwriting risks, catastrophe risks, counterparty default risk, risk margins, own funds outlined in details in the Discussion Paper. It seeks stakeholders’ evidence and proposals to achieve the SCR standard formula review’s objectives on a technically sound basis. At this stage the Discussion Paper does not propose policy options, which will be addressed during roundtable discussions with relevant stakeholders organised in the course of 2017.
The Final Advice will be submitted to the European Commission by February 2018.
Gabriel Bernardino, Chairman of EIOPA, said: “The review of the SCR standard formula marks the first phase of the Solvency II review process. Therefore, we call upon all stakeholders to share with us evidence-based information and necessary, justified changes. EIOPA is particularly interested in concrete proposals to achieve the objective of more simplicity and proportionality whilst reflecting risk-sensitivity of the system and avoiding pro-cyclicality”.
The consultation period ends on 3 March 2017.