Official Journal of the European Union
Solvency II – EEA Joint Committee Decision 192/2018 published in the OJ – 4 March 2021 – A Decision of the EEA Joint Committee has been published in the Official Journal of the European Union incorporating Commission Implementing Regulation (EU) 2018/633 on the mapping of credit assessments of external credit assessment institutions (ECAIs) under the Solvency II Directive (2009/138/EC) (Solvency II) into Annex IX (Financial Services) to the EEA Agreement.
The Decision was made on 21 September 2018. Its date of entry into force is specified as the later of 22 September 2018 or the date of entry into force of Decision 62/2018 of 23 March 2018 relating to the incorporation of delegated and implementing regulations under Solvency II.
Decision of the EEA Joint Committee No 192/2018
European Insurance and Occupational Pensions Authority
EU Taxonomy Regulation - EIOPA publishes report on Article 8 – 26 February 2021
The European Insurance and Occupational Pensions Authority (EIOPA) has published a report on the relevant key performance indicators (KPIs) that should be mandatorily disclosed by insurance and reinsurance undertakings falling within the scope of the Non-Financial Reporting Directive (2014/95/EU) (NFRD), in accordance with the EU Taxonomy Regulation (EU) 2020/852 (Taxonomy Regulation). The report responds to a call for advice from the European Commission to all the European Supervisory Authorities (ESAs) (namely, EIOPA, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA)).
The report proposes two KPIs on sustainability that will depict the extent to which:
- the insurer or reinsurer carries out taxonomy-aligned activities in terms of non-life gross premiums written; and
- the insurer or reinsurer is funding or financing taxonomy-aligned economic activities in relation to total investments.
EIOPA considers that these KPIs provide relevant information to financial markets, depicting fairly insurers’ and reinsurers’ business models, underwriting policies and investments, and allows for comparisons with other financial sectors and non-financial undertakings.
Please see the Banking and Finance, and Securities and Markets, sections respectively for similar reports from the EBA and ESMA.
EIOPA Report: Insurers’ sustainability reporting: EIOPA’s technical advice on key performance indicators under Article 8 of the Taxonomy Regulation (EIOPA-21-184)
Letter to John Berrigan, European Commission, Director-General DG FISMA: EIOPA’s advice on insurance and reinsurance undertakings’ key performance indicators on sustainability for non-financial reporting (EIOPA-21/165)
Webpage
Press release
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Solvency II - non-life underwriting risk – EIOPA launches study - 1 March 2021
EIOPA has launched a Europe-wide comparative study on non-life underwriting risk in internal models (NLCS 2020) under Solvency II (2009/138/EC) (Solvency II).
The objectives and priorities are: (i) a fair evaluation of non-life underwriting risk within internal models at an EU level and their development over a five-year time horizon; (ii) a focus on the outputs and results of internal models; and (iii) the consistent submission of information.
The deadline for insurance undertakings to submit results to their national supervisory authority is 15 September 2021 and EIOPA recommends that participants make their first submissions well before the deadline so that potential re-workings do not create unnecessary additional submissions. The deadline for national supervisory authorities to submit the information to EIOPA is 1 October 2021.
NCLS 2020 Introduction
Log file A
Log file B
Website (surveys, Q&As and validation cross submission)
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EIOPA co-operation with Japan’s FSA - EIOPA and the FSA exchange letters – 26 February 2021
EIOPA and Japan’s Financial Services Agency (FSA) have exchanged letters on co-operation in the area of insurance regulation and supervision. The purpose of the letters is to provide a framework for co-operation, increased mutual understanding, exchange of information and technical assistance to the extent permitted by the laws, regulations, and requirements to which EIOPA and the FSA are subject. EIOPA and the FSA confirm that they will continue to engage in dialogue and may share information on regulatory developments of mutual interest.
Letter from EIOPA
Letter from FSA
Press release
Financial Conduct Authority
COVID-19 – FCA publishes final guidance on business interruption insurance claims – 3 March 2021
The FCA has published its final guidance on proving the presence of COVID-19 in business interruption (BI) insurance claims. The guidance is based on the High Court’s judgement and declaration, and the additional statements from the Supreme Court in the context of insurers’ obligations under the FCA’s rules to handle claims fairly.
The guidance sets out:
- types of evidence and methodologies that policyholders may use when proving the presence of COVID-19 in a particular area around their premises; and
- the FCA’s expectations for insurers and insurance intermediaries in relation to policyholders seeking to prove the presence of COVID-19 when making claims under BI policies.
The FCA consulted on the draft guidance in December 2021 and it has published a feedback statement summarising the responses it received and explaining the amendments made to address the concerns raised. Going forward, the FCA also plans to publish a COVID-19 calculator to help policyholders evidence whether COVID-19 was likely to be present in their policy area. It is also, however, open to policyholders to carry out calculations themselves.
The guidance comes into effect immediately and will cease to have effect on 31 January 2022, by which time the FCA expects all issues relating to proving the presence of COVID-19 will have been resolved.
FCA final guidance on proving the presence of COVID-19 in BI insurance claims
Feedback statement
New webpage
Updated webpage
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RPI changes – FCA publishes statement on defined benefit pension transfer redress – 3 March 2021
The FCA has published a statement about its intention to amend its finalised guidance on how to calculate redress for unsuitable defined benefit (DB) pension transfers. The amendments are being made to reflect changes to the way that the Retail Prices Index (RPI) inflation measure is calculated, which the government announced in its November 2020 Spending Review and take effect from February 2030.
The FCA explains that the finalised guidance refers to both the RPI and the Consumer Prices Index (CPI), an alternative inflation measure. The RPI change means that from February 2030 the -1% adjustment to the RPI assumption used in the guidance to calculate the CPI assumption will not reflect the assumed difference between the RPI and the CPI. It will be too large and some consumers (who transfer out of DB pensions that are uprated annually in line with the CPI) may not receive the correct amount of redress.
The FCA intends, therefore, to update the CPI adjustment in the guidance to ensure that these consumers continue to receive appropriate redress. It does not plan to carry out any consultation and it aims to make the updates by mid-March 2021, backdating the change to 25 November 2020. The update will apply to all calculations carried out from that date.
FCA statement on RPI changes and DP pension transfer redress
Please see the Securities and Markets section for an item on a supervisory statement published by the ESAs on the Sustainable Disclosure Regulation.
