Due to the COVID-19 pandemic, there has been unusually high uncertainty in 2020 surrounding economic developments and related expectations. Non-life and life insurance companies shall continue thorough assessment of the operating environment and risks involved in their own operations as well as a frequent and active dialogue with the FIN-FSA in 2021. At the same time, the companies are expected to take precautionary measures by developing risk management to protect insured interests and by tending to strong solvency while ensuring adequate resourcing of internal control functions and access to information.
Next year, EIOPA will publish a statement addressed at supervisory authorities, setting expectations on the treatment of risks related to climate change in ORSA. In the initial stage, the supervisory authority’s expectations are primarily related to the identification and qualitative assessment of climate risks.
The real estate market in Finland is heavily polarised, which affects, in addition to sale times, also the reliability of different valuation methods. The FIN-FSA is currently preparing a thematic review of real estate valuations concerning all insurance institutions.
In addition, the FIN-FSA will review the quality and extent of regular supervisory reports (RSR) next year. In the same context, the FIN-FSA will assess the frequency of submission of these reports on a company-specific basis.
In the supervision of the conduct of business, the supervisor has paid attention to product governance, group insurance arrangements, ensuring of the professional competence of insurance agents as well as the handling processes and lead times of compensations in statutory insurance classes. Another area of interest is the assessment of outsourcing processes, particularly in areas where public administration duties are conducted.
For further information, please contact
- Teija Korpiaho, Head of Division, tel. +358 91835528 or teija.korpiaho(at)fiva.fi
- Timo Holopainen, Supervision Manager, tel. +358 91835661 or timo.holopainen(at)fiva.fi
This news item was originally published by the Financial Supervisory Authority (FIVA FI). For more information, please see the Source Link.