EIOPA published the findings of its peer review of the Regular Supervisory Report (RSR). The peer review examined how and to what extent the proportionate approach set out under the Delegated Regulation has been implemented among national competent authorities (NCAs).
30. SLOVAKIA (SK)
30.1 CONTEXT OF THE ASSESSMENT/TAKING THE DECISION ON THE FREQUENCY OF THE RSR
The submission of the full RSR follows the prescription of Article 312 (1) of the Delegated Regulation stating that the full RSR needs to be submitted by (re)insurance undertakings mandatorily at least once every 3 years. There is no additional NCA local legislation or policy in place neither for the entire market nor for single specific undertakings. The NBS considers that, based on the ongoing supervisory activity performed, the annual quantitative and narrative reports provided under SII and the fact that the market under NBS’ supervision is quite small (only 14 solo undertakings and no groups), there is no need for more frequent submission of the full RSR. The NBS doesn’t consider changing the approach to the frequency of the full RSR. However, there was one case during the reference period of the peer review, when an undertaking was asked to submit the RSR for the years 2017 and 2018. The NBS considers the criteria that reveal the risk profile of the undertaking are more relevant than the criteria indicating the size of undertaking to decide on the RSR frequency. The NBS uses an IT system for analyzing insurance undertakings and perform their risk assessment. In particular, based on the examination of the QRTs and of the ORSA report there is an assessment of the undertakings from a supervisory point of view.
30.2 COMMUNICATING THE DECISION
The NBS states that no summary RSR is required even if material changes occur. The reason is that the market is very small and NBS is in close contact with the management of the undertakings. For this reason, every important change is promptly communicated to the NBS without the need for a formal communication.
Proportionality – risk-based supervisory approach
The NBS should take into account proportionality and apply a risk-based approach for defining the reporting frequency of the full RSR based on the outcome of the risk assessment where at least the undertakings with a high risk profile and impact on the market are submitting the RSR more frequently than once every 3 years and the undertakings with a low risk profile and impact are submitting the RSR less frequently than yearly.
Proportionality – internal policy
The NBS should develop an internal policy which structures the process of defining different frequency of submission of the full RSR in order to ensure consistency of the SRP following the Guideline 2 of the EIOPA Guidelines on SRP.
Summary of EIOPA peer review on the Regular Supervisory Report prepared by Insurance Europe:
Summary of EIOPA peer review on the Regular Supervisory Report.pdf