Issue 1158 / 5 May 2022

European Insurance and Occupational Pensions Authority

Retail investment protection and insurance-based investment products - EIOPA publishes final report - 29 April 2022

The European Insurance and Occupational Pensions Authority (EIOPA) has published a final report (BoS-22/244) containing technical advice to the European Commission (the Commission) on retail investment protection in relation to the sale of insurance-based investment products. The final report follows the Commission’s July 2021 call for advice and EIOPA’s subsequent consultation paper (BoS-22-020), published in January 2022.

Among other things, EIOPA has recommended the disapplication of non-personalised pre-contractual disclosures under the Solvency II Directive (2009/138/EC) (Solvency II) to address duplication between disclosure requirements under Solvency II and in key information documents (KID) under the Regulation for packaged retail and insurance-based investment products (1286/2014/EU) (PRIIPs KID Delegated Regulation). It has also suggested developing an ‘annual statement’ in the Insurance Distribution Directive ((EU) 2016/97) (IDD), which could include information on paid premiums, past performance and current value of savings.

EIOPA final report on technical advice to the European Commission regarding certain aspects relating to retail investor protection (BoS-22/244)


Press release

Prudential Regulation Authority

Insurance stress test 2022 - PRA launches exercise - 4 May 2022

The PRA has launched its biennial insurance stress test (IST 2022) exercise by publishing an updated version of its stress testing webpage, alongside a Dear CEO letter and a ‘Scenario Specification, Guidelines, and Instructions’ document.

The largest regulated life and general insurance firms are being asked to provide information about how a range of stress scenarios would affect their business. The PRA expects participating firms to engage fully and provide comprehensive responses, and will publish a summary of the overall results. Individual firm results will not be published, but will inform the PRA’s supervisory priorities.

In the context of heightened geopolitical and economic risks, the PRA has included an additional question requiring firms to consider the implications of inflationary pressures on their balance sheet and business model.

The PRA will be hosting a webinar for IST participants on 11 May 2022 for the launch of the exercise, and will run a Q&A process ahead of the submission deadline on 28 September 2022. In addition, depending on industry demand, the PRA plans to hold two industry roundtables in July 2022 to give firms the opportunity to discuss and seek clarification on IST 2022.

PRA Life Insurance Stress Test 2022 Scenario Specification, Guidelines and Instructions

PRA ‘Dear CEO’ Letter on the insurance stress test 2022