Solvency II

Recent Articles

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  24.11.2022

  Un­lock­ing the po­ten­tial of Solvency II?

  According to the HMT Response, the majority of its proposals were supported by the evidence collected as part of the consultation process[3], namely the proposals to: change the calculation of the risk margin to reduce it by 60-70% for long-term life insurers (measured in the context of recent economic conditions); adjust the approach to determining the fundamental spread component of the matching adjustment; widen the range of assets permissible in matching adjustment portfolios; and reform reporting and administrative requirements to reduce EU-derived burdens. Fundamental Spread Unsurprisingly,...

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  18.11.2021

  Po­land: Solvency II Dir­ect­ive re­view brings changes for in­sur­ance and re­in­sur­ance un­der­tak­ings

  PL

  What changes does the Draft contain? The Draft contains changes that aim to: strengthen the principle of proportionality by, inter alia, increasing the parameters for identifying those insurance undertakings that are excluded from the scope of the Solvency II Directive, or by identifying low-risk profile undertakings to which reduced supervisory requirements will apply; improve the quality of supervision by, inter alia, exchanging information between national supervisory authorities, through the European Insurance and Occupational Pensions Authority (EIOPA) on authorisation refusals to take up...

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  12.01.2021

  Ger­many: BaFin pub­lishes Gen­er­al Ad­min­is­trat­ive Act re­gard­ing the busi­ness of UK in­sur­ance un­der­tak­ings in Ger­many after 31 Decem­ber 2020

  On 31 December 2020 – at the end of the transitional period during which the UK was still part of the Customs Union and the Single Market despite its exit from the European Union on 31 January 2020 – , BaFin has issued and published a General Administrative Act ("Allgemeinverfügung zur Durchführung und Abwicklung der grenzübrschreitenden Tätigkeit von Versicherern und EbAV aus UK und GI") stating that insurance undertakings and institutions for occupational retirement provision (IORPs) with their registered office in the United Kingdom of Great Britain and Northern...

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  06.03.2020

  In­sur­ance 2020: LIBOR trans­ition and new re­quire­ments for OTC de­riv­at­ives

  Background The FCA said in July 2017 that it would no longer compel panel banks to submit rates to enable the LIBOR calculation and the market should not rely on LIBOR being available beyond 2021. This affects a number of currencies and tenors, including USD, Sterling and Swiss Franc. EURIBOR is being reformed but will (in the short term at least) continue. Financial markets must find replacements for LIBOR. The FCA and other regulators have made it clear that markets should not expect a legislative solution to the problem or rely on the continuance of LIBOR or other IBORs. Even if those benchmarks...

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  24.02.2020

  In­sur­ance Cloud Out­sourcing: EIOPA pub­lishes new guidelines

  Key guidelines The Guidelines largely follow the EBA Guidelines on outsourcing arrangements (effective since 30 September 2019), but are more streamlined and primarily focus on outsourcing critical or important operational functions. Key guidelines include: outsourcing policies should be updated to specifically address outsourcing to cloud service providers; written notifications of critical or important outsourcings should be made to supervisory authorities – happily the consultation proposal to provide draft agreements to supervisors has been dropped; a record of cloud outsourcing arrangements...

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  21.01.2020

  CJEU rules in­surers li­able for not in­form­ing life in­sur­ance policy hold­ers of can­cel­la­tion rights

  The CJEU ruled that the failure of life insurers to inform policyholders of their right to cancel their life insurance policies or the communication of incorrect information that limits a policyholder's cancellation rights entitles a customer to receive the repayment of all paid insurance premiums, including capitalised interest. Such entitlements will remain in place even after the conclusion of the policy and in certain circumstances after its termination. In their opinion, the CJEU stated that the right of life insurance policyholders to cancel their policy exists even if their life insurers...

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