Insurance Quarterly Legal And Regulatory Update - Q4 2013
(i) EIOPA Publishes the Final Guidelines for the Preparation of Solvency II
The European Insurance and Occupational Pensions Authority ('EIOPA') published the final Guidelines for the Preparation of Solvency II (the 'Guidelines') on 27 September 2013. The Guidelines were finalised following the closing of the consultation on the Guidelines on 19 June. The consultation received over 4000 comments.
The Guidelines and the responses to the consultation can be viewed at the attached link: https://eiopa.europa.eu/consultations/consultation-papers/2013-closed-consultations/march-2013/guidelines-on-preparing-for-solvency-ii/index.html
The Guidelines aim to ensure that National Competent Authorities ('NCAs'), insurance companies and groups take active steps towards implementing certain key elements of Solvency II (as set out below) in a consistent and convergent way:
The system of governance; Forward looking assessment of an undertaking's own risk (based on the Own Risk and Solvency Assessment (OSRA) principles). This operates on the assumption that the Omnibus II measures and updated Technical Specifications on Pillar 1 quantitative issues will be available in time for companies to carry out a forward looking assessment of own risks during 2014 and 2015; Submission of information to National Competent Authorities; and Pre-application for internal models. EIOPA has stated that it envisages making the Guidelines publicly available in all the official EU languages on 31 October 2013.
It is expected that the Guidelines will be effective on 1 January 2014 subject to phasing in certain provisions over the course of 2014 and 2015.
EIOPA understands that undertakings will need time to establish the appropriate internal processes and IT systems. EIOPA's approach is that for preparatory purposes the annual information is submitted once before Solvency II is applicable and the quarterly information is submitted in relation to the two quarters prior to the application of Solvency II.
Based on the assumption that the Solvency II Directive will be applicable on 1 January 2016, the relevant guidelines therefore state that:
For the annual submission, the first set of data will be expected in 2015 on the year end data from 2014. The deadline is 20 weeks for solo undertakings and 26 weeks for groups. For the quarterly submission, the first set of data will be expected from Q3 of 2015. The deadline is 8 weeks for solo undertakings and 14 weeks for...
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