EIOPA requests insurance and reinsurance undertakings from the European Economic Area and subject to Solvency II to provide specific information in the context of EIOPA's 2nd Long-Term Guarantees (LTG) Report due in 2017.
These are:
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Impact of the symmetric adjustment mechanism to the equity risk charge on the financial position of undertakings
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Impact of the extrapolation of risk-free interest rates on the financial position of undertakings
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Losses due to bond defaults and downgrades of bonds in matching adjustment portfolios
Insurance undertakings are requested to complete an Excel template and submit it to the respective responsible National Supervisory Authority. The template should be filled in according to the instructions in the technical specifications and taking into account the technical information.
Timeline:
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15 June 2017 - Deadline for insurance and reinsurance undertakings to submit results to their National Supervisory Authorities
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16 July 2017 - Deadline for National Supervisory Authorities to report to EIOPA
The long-term guarantees (LTG) measures were introduced in the Solvency II Directive to ensure an appropriate treatment of insurance products that include long-term guarantees. The long-term guarantees measures are the following:
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The extrapolation of risk-free interest rates
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The matching adjustment, the volatility adjustment
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The extension recovery period in case of non-compliance with the Solvency Capital Requirement
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The transitional measure on the risk-free interest rates
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The transitional measure on technical provisions
The equity risk measures are the application of a symmetric adjustment mechanism to the equity risk charge and the duration-based equity risk sub-module. The measures on equity risk should ensure an appropriate allowance for equity risk in the capital requirement for insurance and reinsurance undertakings
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