Today, the European Insurance and Occupational Pensions Authority (EIOPA) submitted to the European Commission the draft amendments of regulations (Implementing Technical Standards – ITS) laying down supervisory reporting and disclosure requirements under Solvency II.
The draft amendments of ITS as submitted to the European Commission for adoption are balanced and expected to bring several benefits, which will ultimately lead to a better protection of policyholders and better use of the principle of proportionality.
Moreover, EIOPA’s draft proposal leads to fit-for-purpose reporting requirements, reduction of reporting costs for the majority of insurance undertakings and better supervision through the inclusion of some new information on emerging risks and new areas for which supervisors identified a number of data gaps.
In particular, the amendments of Supervisory Reporting and Public Disclosure include simplifications of quarterly reporting for all undertakings, elimination of some annual reporting templates for all undertakings and new thresholds to better promote risk-based and proportionate reporting requirements, leading to exemptions of reporting certain templates for many undertakings.
Furthermore, considering the specific nature of captive insurance and captive reinsurance undertakings, the reporting requirements have been adjusted to the nature, scale and complexity of their business and consider their different business models.
EIOPA Guidelines on the supervision of branches of third country insurance undertakings and on reporting for Financial Stability Purposes were also amended, while ensuring consistency between reporting requirements.
The draft proposals of ITS take into account feedback received following a public consultation in 2021.