On 21 December EIOPA has published reports on ‘the use of exemptions and limitations from regular supervisory reporting’ and on ‘the use of capital add-ons by NCAs’
• The report on exemptions and limitations (https://eiopa.europa.eu/Publications/Reports/EIOPA-BoS-17-240rev2_EIOPA 2017 report on the use of limitations and exemptions.pdf) covers reporting on exemptions for the whole of 2016 and on limitations for the first quarter of 2017.
In total 134 undertakings and 8 groups were granted an exemption from annual reporting. While 703 undertakings and 21 groups were granted limitations from quarterly reporting.
Twenty-one NCAs have not authorised any undertaking to use exemptions or limitations as many of them were planning to collect at least a complete set of annual reporting before taking a decision on the limitations or exemptions.
• The report on Capital Add-Ons (https://eiopa.europa.eu/Pages/Newsletter/Newsletter.aspx?jg=913644f0-f7fb-4b84-a6ad-74b505bb948e&eg=bad1aca9-4028-4ab8-a31c-55803cb9f153&lg=e0f45db1-b909-4bbb-a43a-2f67e9d6fbe2<p=c) was published for the first time. At year-end 2016, four Member States have imposed a total of 20 CAOs at individual undertaking level and one Member State has imposed a total of 4 CAOs at group level.
Most of the CAOs are related to cases where the risk profile of the undertaking deviated significantly from the assumptions underlying the Solvency Capital Requirement calculated under the standard formula. The CAOs set, vary from 2% to 85% as part of the total Solvency Capital Requirement of the undertaking.