Tracker, Financial Services Regulation & Compliance - Insurance

DOMESTIC: 

CBI publishes guidelines on Directors' Certifications
On 18 August 2016, the Central Bank of Ireland (CBI) published guidelines for Solvency II (re)insurance undertakings on directors' certifications. The guidelines set out the substantive requirements on (re)insurers regarding (a) the directors' annual compliance statement in respect of the relevant (re)insurer and (b) the directors' accuracy certifications in respect of certain supervisory reports submitted to the CBI. Templates of the compliance statement and accuracy certifications are set out in the Appendices to the guidelines.

EUROPEAN: 

EIOPA publishes new Q&As on Solvency II
On 4 and 8 August 2016, European Insurance and Occupational Pensions Authority (EIOPA) published new sets of questions and answers (Q&As) relating to certain Solvency II matters.  These include Q&As on (a) guidelines on reporting and public disclosure, (b) final report on the  implementing technical standards (ITS) on the templates for the submission of information to the supervisory authorities, (c) the final report on the ITS on procedures, formats and templates of the solvency and financial condition report, (d) guidelines on valuation of technical provisions, and (e) the final report on the ITS on procedures, formats and templates of the solvency and financial condition report.

EIOPA publishes monthly technical information
On 5 August 2016, EIOPA published technical information on (a) the symmetric adjustment of the equity capital charge, and (b) relevant risk free interest rate term structures, for Solvency II purposes with reference to the end of July 2016.

EIOPA publishes consultation paper on the presentation format of the IPID under IDD
On 1 August 2016, EIOPA published a consultation on proposed implementing technical standards under the Insurance Distribution Directive (IDD). These relate to the standardised presentation format of the insurance production information document (IPID) to be produced by manufacturers of non-life insurance products (and provided to customers prior to sale).  Feedback is invited on features of the IPID such as its length, the use of visual aids, the choice between digital and paper formats and the type of customer to whom the IPID should be provided.  The deadline for comments is 24 October 2016.

Insurance Europe reminder regarding format for the IPID
On 2 August 2016, following EIOPA's consultation on the IPID, Insurance Europe issued a press release reminding stakeholders that it has developed its own proposed format for the IPID; which it states meets all of the information requirements set out under the IDD. The proposed format can be viewed on the Insurance Europe website.

EU Regulation on technical information for calculation of technical provisions and basic own funds
On 8 August 2016, the European Commission adopted Commission Implementing Regulation (EU) 2015/1376 setting out technical information on the relevant risk-free rate term structures, fundamental spreads for calculation of the matching adjustment and volatility adjustments for each national insurance market.  The technical information must be used by (re)insurers in reporting technical provisions and basic own funds with reference dates from 30 June to 29 September 2016.

Call for European Parliament and Council of the EU to object to CDR supplementing PRIIPs
The Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE) recently published a letter to the European Parliament outlining concerns about proposed Commission Delegated Regulation (C(2016) 3999) (the draft CDR). The draft CDR sets out regulatory technical standards on key information documents (KIDs) for Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs).  AMICE concerns include that the proposed CDR does not address a number of outstanding issues.  These include (a) the presentation of the ‘biometric risk premium’ for insurance products, (b) the risk categorisation of insurance products. AMICE urges the Parliament and the Council of the EU to object to the proposed CDR in order to allow the European Commission and European Supervisory Authorities the opportunity to resolve these issues. 

For further information please contact a member of the Financial Regulation team. 

Date published: 06 Sep 2016