EIOPA has started a new work stream on infrastructure investments by insurers concentrating on a more granular treatment of infrastructure investments within the regulatory framework of Solvency II.
The paper sets out initial ideas on the following topics:
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Definition of infrastructure investments that offer predictable long-term cash-flows and whose risks can be properly identified, managed and monitored by insurers
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Possible criteria for this new category of infrastructure investments covering issues such as standardisation and transparency
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Prudentially sound treatment of the identified investments within a risk based supervisory system, focusing on their specific risk profile
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Effectiveness of the current Solvency II risk management requirements in ensuring that the risks of this complex and, for insurers, relatively new asset class, are properly managed
The consultation period will end on 26 April 2015.
In February 2015, the EC requested EIOPA to provide the technical advice on the identification and calibration of infrastructure investment risk categories in the Commission Delegated Regulation (2015/35) supplementing the Solvency II Directive (2009/138/EC).
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