The European Insurance and Occupational Pensions Authority (EIOPA) is launching today a public consultation on its supervisory statement on the supervision of reinsurance concluded with third-country reinsurers.
This draft supervisory statement outlines the supervisory expectations for national supervisors and the industry in the event of using reinsurance from third countries.
The statement sets out supervisory expectations in several areas, including the assessment of the business context when using reinsurance from third countries and the importance of an early supervisory dialogue. Furthermore, it includes supervisory considerations on how to assess reinsurance agreements and undertakings’ risk management systems in relation to the use of third-country reinsurers. Finally, the draft supervisory statement foresees tools that will help to mitigate any additional risks that might arise.
The statement shall ensure high-quality and convergent supervision of insurers that have in place reinsurance arrangements with third-country reinsurers.
Stakeholders are invited to provide their feedback until 10 October 2023 by responding to the questions via the online survey.