EIOPA opened for consultation its draft technical advice on possible amendments to the delegated acts under Solvency II and the Insurance Distribution Directive (IDD) concerning the integration of sustainability risks and factors.
The public consultation follows the European Commission request for technical advice sent to EIOPA and ESMA earlier this year, and the related stakeholder survey on the integration of sustainability conducted by EIOPA. EIOPA is expected to provide the EC with its final technical advice by 30 April 2019.
The technical advice contains two sections related to issues affecting the provisions of delegated acts under Solvency II and IDD respectively. Technical advice is proposed with respect to:
- Solvency II:
- operating conditions – integration of sustainability risks in the actuarial function and in the prudent person principle
- organisational requirements – integration of sustainability risks in the risk management function
- risk management – review of risk management areas to ensure sustainability risks are dealt with and their effects is considered in the overall solvency needs
- IDD:
- conflict of interests (related to organisational requirements)
- product oversight and governance (related to the target market assessment)
Stakeholders are invited to provide comments to EIOPA by 30 January 2019 by responding to the questions via an online survey.
Insurance Europe response:
IE response to EIOPA consultation on sustainability in DAs under SII and IDD.pdf