The European Insurance and Occupational Pensions Authority (EIOPA) is inviting market participants and (re)insurance stakeholders to provide their feedback on the first set of the draft Guidelines for Solvency II.
With this, EIOPA enters the final regulatory phase of Solvency II, during which it will present its draft Implementing Technical Standards and Guidelines to the public until the regulation becomes applicable on 1st January 2016.
The current public consultation consists of six papers and is complementing the first set of ITS, in particular in respect of Pillar 1. Five papers cover different Solvency II elements:
-Pillar 1-Own Funds, the Standard Formula SCR, Technical Provisions, Group Solvency;
-Internal models;
-Pillar 2 - ORSA and Governance;
-Supervisory Review Process;
-Equivalence.
The sixth consultation paper contains the impact assessment for all the above-mentioned draft Guidelines, which provides for a comprehensive overview of the basis for EIOPA’s assessment methodology.
The consultation will end on 29th August. It can be viewed on EIOPA's website: https://eiopa.europa.eu/consultations/consultation-papers/index.html
Peter Ott, European head of Solvency II at KPMG, comments “As the first wave of implementing technical standards related solely to various approval processes, insurers could be forgiven for assuming that the first wave of Guidelines would cover similar material. However, these papers are far more wide-reaching and will be relevant to all insurers who must read this material carefully to understand the full impact on their business.”
Although the delegated acts are not yet publicly available, EIOPA have published a separate annex, of over 100 pages, including the relevant draft articles to which the Guidelines relate. This will assist those who have not seen the latest draft requirements.
Janine Hawes, insurance director at KPMG, adds “The five papers include over 500 individual Guidelines that the national competent authorities will need to make their best efforts to adopt, if they are not materially changed post consultation. This will follow the usual comply or explain route.
The material has relevance to all firms that will need to comply with Solvency II. As well as the Guidelines themselves, the papers include extensive explanations to help firms understand the requirements. These papers make public for the first time much of the material that was subject to private pre-consultation, giving the same insight now to all firms.”
|
