EIOPA invites market participants and (re)insurance stakeholders to provide their feedback on the draft Guidelines on the Operational Functioning of Colleges of Supervisors. The consultation closes on 30 June, 2014.
The Guidelines aim to clarify and enhance cooperation among competent authorities with regard to the supervision of cross-border insurance or reinsurance groups and to facilitate the functioning of supervisory colleges. They address such issues as cooperation between competent supervisory authorities for cross-border groups, information-sharing among supervisors and communication to the (re)insurance groups.
Article 248(6) SII Directive (OMDII) explicitly requires EIOPA to issue guidelines on the operational functioning of colleges.
The guidelines have been drafted with the following aims in mind:
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Specify responsibilities of college members and participants;
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Clarify and enhance the cooperation between competent supervisory authorities for cross-border groups;
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Enhance information-sharing among supervisors and communication to the group;
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Enhance the single market level playing field by ensuring a consistent approach among colleges.
In drafting the guidelines, EIOPA has aimed to reach an appropriate balance between practical solutions and necessary requirements to ensure the proper functioning of colleges, while minimising the burden on supervisors and undertakings alike.
The guidelines should achieve the following benefits for supervisors:
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A step-by-step approach to set-up colleges
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Exchange of qualitative and quantitative information including a list of ratios and selected data to be exchanged on a regular basis for improving information exchange
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A shared view on the business’ financial position and the risks of the group and major individual entities of the group as part of the supervisory review process
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Templates to prepare the Coordination Arrangements and the Emergency Plan
Supervisors and, indirectly, consumers should benefit from:
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Detection of potential serious financial disturbances at an early stage
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Coordination of supervisory actions in emergency situations
The groups should benefit from:
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Facilitated communication with supervisors by organising regular meetings and coordinating information requests to avoid duplications;
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Ensure equal treatment of groups through the standardisation of information requests within colleges and the facilitation of applications and approval process
The consultation will end on 30 June 2014.
Cover note
Full consultation paper
© EIOPA
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