On 21 July, EIOPA published a Supervisory Statement on the Solvency II recognition of schemes based on reinsurance with regard to COVID-19 and credit insurance (here).
The Statement provides EIOPA’s view on the exceptional supervisory treatment– for Solvency II purposes – of schemes based on reinsurance implemented by Member States in the extraordinary context of the European Commission ‘Temporary Framework for state aid measures to support the economy in the current COVID-19 outbreak’ adopted on 19 March 2020.
To support supervisory convergence, the statement provides EIOPA’s view on the treatment for Solvency II purposes of schemes based on reinsurance implemented by Member States within the Temporary Framework.
EIOPA recommends NSAs to allow (re)insurers to consider schemes that transfer insurance risk to a Member State’s government based on the Temporary Framework as having the same consequences as reinsurance as defined in Directive 2009/138/EC (Solvency II).