EUROPEAN UNION: EIOPA Publishes Second Set of Solvency II Standards and Guidelines

Wednesday July 15 2015

On 6 July 2015 the European Insurance and Occupational Pensions Authority (EIOPA) published the second set of draft Implementing Technical Standards (ITS) and Guidelines for Solvency II. The set covers different areas from all three Solvency II pillars (quantitative basis; qualitative requirements; reporting and disclosure).

Later in July 2015, EIOPA will release the XBRL Taxonomy based on the ITS on supervisory reporting published on 6 July 2015. This will allow undertakings to finalise their preparations for reporting under Solvency II.

The published ITS and Guidelines concerning each Pillar cover the following:

Pillar I

ITS: List of regional governments and local authorities; Index for the equity dampener; Currency stock for currencies pegged to the EURO; Standard deviations for health insurance obligations subject to health risk equalisation systems.
Guidelines: Valuation of assets and liabilities (other than Technical Provisions); Implementation of the long term guarantee measures.

Pillar II

ITS: Procedures when assessing external credit assessments; Supervisory transparency and accountability; Capital add-ons.

Guidelines: Extension of the recovery period.

Pillar III

ITS: Templates for the submission of information to the supervisory authorities; Procedures, formats and templates of the Solvency and Financial Condition Report; Exchange of information on a systematic basis within colleges.

Guidelines: Methods to determine the market share for the purpose of exemptions to supervisory reporting; Reporting for financial stability purposes; Reporting and disclosure; Exchange of information on a systematic basis within colleges; Third Country Branches.

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