Insights

On the 27th of March 2013, the European Insurance and Occupational Pensions Authority (“EIOPA”) launched a public consultation on the Guidelines issued as part of the preparation of the implementation of Solvency II. These Guidelines set out the appropriate steps that re/insurance undertakings are to take to prepare for the implementation of the Solvency II Directive and seek to ensure that there is a consistent and convergent approach with respect to the preparation of Solvency II by all national authorities.

The Guidelines, which will apply from the 1st of January 2014, seek to ensure the proper management of undertakings – with the key areas being the system of governance, including the risk management system and a forward looking assessment of the undertaking’s own risks (based on the ORSA), pre-application for internal models and submission of information to the national competent authorities.

The competent authorities of all member states are to send a progress report to EIOPA on the application of the Guidelines by the end of February following each relevant year; the first is to be submitted on the 28th of February 2015, which report is to be based on the period 1st January 2014 up until 31st December 2014. The public consultation ends on the 19th June 2013 and EIOPA intends to subsequently publish the final Guidelines in October 2013 with an implementation date starting 1 January 2014.