Selected recent European Insurance news items of more general interest:
On 22 September, the Governor of the Bank of England spoke on climate change - the physical, liability and transition risks that affect financial stability - and the responsibilities of the G20. Mark Carney's interesting speech covered the Task Force on Climate-related Financial Disclosures (TCFD) and investment in "green bonds", which he views as "an opportunity to advance a low carbon future while raising global investment and spurring growth". He comments that general insurers are on the "front line". However this issue goes much further and I noted the scope for transition risk - including "reassessment of the value of a large range of assets as costs and opportunities become apparent" - in particular, he cites a striking example of the recent changes in capitalisation of the top four US coal producers. Related to this, the PRA appears to have launched a new webpage "Climate change, green finance and financial stability".
On 20 September, the Treasury Committee published correspondence on numbers of financial services firms in the UK and EEA member states holding passports to conduct business in other EEA member states and the UK respectively.
EIOPA has published presentations from the Insurance and Reinsurance Stakeholder Group Meeting held on 15 September including the following:
- The presentation titled "EIOPA feedback to IRSG general observations and Q&A input on the RTS on KID for PRIIPs" refers to "More than 500 questions gathered" (for Q&As) and "Decision Trees" being developed. The ESAs have been developing Q&As as supporting level three material to "aid implementation and consistent supervision of the KID". However, this has been somewhat overshadowed by the European Parliaments' objections to the level 2 material i.e. the RTS.
- The presentation titled "SCR review project" provides information on the scope of the review and timetable. A discussion paper and call for data are expected in December and there will be other public consultations of the draft advices next year. EIOPA plan to stagger the advice to EC - part in October 2017 and part in February 2018.
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