EIOPA opens public consultation on revised Guidelines on Supervisory Review Process

The European Insurance and Occupational Pensions Authority (EIOPA) launched today a public consultation on its draft revised Guidelines on the Supervisory Review Process, used by supervisors to regularly assess insurers’ and groups’ exposure to risks and the effectiveness of the controls they have in place. The primary objective of the revision is to update the Guidelines by clarifying existing instructions as necessary in light of the Solvency II review and by bringing emerging risks within their scope. The proposed amendments to the Guidelines pursue two key goals: first, to align the existing provisions with the latest regulatory developments and new supervisory best practices; and second, to incorporate new processes to address risks and trends that have emerged since the Guidelines were first adopted. In recommending changes, EIOPA paid due attention to the objectives of regulatory simplification and burden reduction, resulting in targeted and limited changes to the existing rules. To reflect the outcome of the Solvency II review and in order to ensure more effective supervision and financial stability in Europe’s insurance sector, the draft Guidelines include new sections in areas such as business model analysis, joint on-site inspections, early intervention measures, pre-emptive recovery planning, and the supervision of conduct of business. In response to the growing importance of emerging risks, EIOPA also introduced guidance to ensure that supervisory authorities...