The European Insurance and Occupational Pensions Authority (EIOPA) is preparing technical advice to the European Commission on the review of the solvency regulation of non-life and life insurance companies (Solvency II 2020 review). The review would cover, among other things, the formation of the interest rate curve used in the calculation of technical provisions, the solvency requirement for interest rate risk and the treatment of long-term investments.
EIOPA has published a request for information for a comprehensive impact assessment of these review proposals.
The request for information is available on EIOPA’s website.
The request for information includes three scenarios:
- base scenario (status quo),
- scenario 1 includes all of EIOPA’s proposals that have a significant impact on companies’ solvency position,
- scenario 2 includes all of the above-mentioned proposals excluding recalibration of interest rate risk.
The Financial Supervisory Authority (FIN-FSA) is in direct contact with the life and non-life insurance companies that are required to participate in the request for information, i.e. test calculations. For other companies, participation is voluntary. Calculations must be submitted to the FIN-FSA by 31 March 2020.
The FIN-FSA’s Head of Division Teija Korpiaho considers that it is important that Finnish actors participate actively in the test calculations. “The broadest possible participation will ensure that no surprises relating to solvency arise for both insurance companies and supervisors from the Solvency II review,” says Korpiaho.
For further information, please contact
Toni Blomster, Chief Actuary, telephone +358 9 183 5318 or toni.blomster(at)fiva.fi