On 23 April, EIOPA published its Supervisory Convergence Plan for 2018-2019
for the insurance sector which focuses on the implementation of Solvency II and conduct of business supervision.
In the document, EIOPA lists three groups of convergence tools to be used from now on. The tools include amongst others, supervisory statements, Q&As, public best practices, cooperation platforms on cross-border business, dialogue with group supervisors, participation in colleges, and breach of European Union law.
Following a risk-based approach, EIOPA has identified relevant priorities for 2018-2019 to be grouped in three key high-level areas:
-
- Implementation of the common supervisory culture
- Risk assessment framework and application of proportionality
- Common benchmarks for the supervision of internal models
- Supervisory assessment of conduct risk
- Group supervision
- Remuneration policies
- Risks to the internal market and to the level playing field which may lead to supervisory arbitrage
- Calculation of technical provisions
- Cross-border business
- Assessment of internal model outcomes
- Authorisation, fitness and propriety
- Consistent implementation of the EU-US Covered Agreement
- Supervision of emerging risks (data and IT-related risks incl cyber risk, insurtech, Brexit).
The supervisory convergence plan will be revised at the beginning of 2019.