Pensions - Articles - EIOPA provides recommendations on internal models


The European Insurance and Occupational Pensions Authority (EIOPA) published today an Opinion on Internal Models. In this document, EIOPA provides recommendations to National Competent Authorities (NCAs) for three key areas:

     
  1.   NCAs should require the risks related to Sovereign Exposures to be appropriately taken into account in internal models;
    2.  
  2.   Guidance for NCAs to assess applications prepared in the absence of some related formal decisions, including decisions on      granting equivalence to third countries; and
    3.  
  3.   NCAs should carry out comparative studies at the NCA level and contribute to and make use of corresponding studies on the EU level coordinated by EIOPA.
 EIOPA has identified these areas where the existing different approaches would lead to inconsistent approaches for internal models which could jeopardise the joint decision-making processes for group internal models and harm convergence across Member States.
  
 Gabriel Bernardino, Chairman of EIOPA, said:
 “Being an innovative element in the Solvency II framework, internal models is an area particularly prone to inconsistent approaches. The purpose of this Opinion is to promote convergent supervisory practices in this critical area of Solvency II. Later on, we will engage in a follow-up exercise with the NCAs to understand what actions have been taken in light of our Opinion and consider the further measures required”.
 
 EIOPA will continue monitoring the approval processes of internal models and working on their convergence to ensure a common Union supervisory culture and consistent supervisory practices.
  
 EIOPA’s Opinion on Internal Models can be viewed below
  
 

Back to Index


Similar News to this Story

Pension engagement and profitability go hand in hand
UK businesses that actively engage employees in their pensions are also seeing stronger financial performance—highlighting a powerful alignment betwee
No retirement plan leaves you four times more stressed
Almost a third of people in the UK admit to having no plan for their finances in retirement (30%). People without plans are four times more likely to
Regulatory risk remains high on the list of schemes concerns
Aon has released the UK results of its ‘Global Pension Risk Survey 2025/26’, which highlights regulatory risk as a continuing concern for defined bene

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.