European Insurance: General (31 October 2016)

OAC Digest
EU / European Parliament / EIOPA, Life insurance, Non-Life

31 October 2016

Selected recent European Insurance news items of more general interest:

On 26 October, ​EIOPA published their response to the EC’s consultation on the review of the EU macroprudential policy framework. EIOPA supports an expansion of the current framework to insurance, subject to considering the specific nature of the insurance sector and defining objectives and instruments accordingly.  They state that the assessment should take place within the Solvency II framework (see below).

[Non-Life] On 24 October, EIOPA's IRSG published their response to the ITS on the Insurance Product Information Document (IPID) public consultation. The document is to be provided to customers before the sale of non-life insurance products.  

On 20 October, the Financial Reporting Council launched a consultation on improvements to the statement of cash flows. The paper does not discuss issues that arise in the context of financial institutions as the European Financial Reporting Advisory Group (EFRAG) has an active project on The Statement of Cash Flows: Issues for Financial Institutions. EFRAG's Feedback Statement earlier this year stated "For insurance companies EFRAG concluded that it might be premature to suggest changes while the outcomes of the insurance contracts project were still unclear". 

On 19 October, the IRSG published their response to the IAIS ICS public consultation​. The ICS is intended to be a measure of capital adequacy for Internationally Active Insurance Groups and Global Systemically Important Insurers.

Gabriel Bernardino's speech on 18 October at EIOPA's Annual Conference addressed 4 topics - supervisory convergence, the Pan European Personal Pension Product in the context of the Capital Markets Union, the Insurance Distribution Directive and the next regulatory steps. Of particular note were the Chair's comments on regulation where he spoke of:

  • a proposal to "use the 2021 overall review [of the SII regime] to integrate in Solvency II a macroprudential framework for insurance" (see 26 October response above);
  • an EIOPA paper to be published before the end of the year, discussing a minimum harmonized recovery and resolution framework for insurers in the European Union; and
  • looking in the medium term to build a minimum harmonized approach to insurance guarantee schemes in the European Union.  
David Gray

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David Gray
Consultant Actuary

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