EIOPA - European Insurance and Occupational Pensio : EIOPA publishes its Report on the functioning of colleges of supervisors and the Action Plan 2013

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EIOPA PUBLISHES ITS REPORT ON THE FUNCTIONING OF COLLEGES OF SUPERVISORS AND THE ACTION PLAN 2013
• In the course of 2012, EIOPA attended almost all college meetings for 75 insurance cross-border groups;
• EIOPA recognizes further improvements of communication and cooperation in colleges and significant joint efforts for reviewing internal models in the pre-application phase;
• EIOPA observed differences between colleges in the scope and frequency of information exchange as well as in the approaches taken towards risk assessment and analysis;
• The Action Plan 2013 focuses on the development of a common understanding of risks and on the further alignment of work on the pre-application of Internal Models in the period leading up to Solvency II.
Frankfurt, 29 January 2013 - The European Insurance and Occupational Pensions Authority (EIOPA) published today its annual Report on the Functioning of Colleges of Supervisors and the Action Plan 2013.
According to the Report, by the end of 2012, 91 insurance groups with cross-border undertakings were identified in the European Economic Area (EEA). Colleges of supervisors were organized for 78 groups against 69 groups in 2011. For at least 20 large groups, college meetings were organised more than once a year. 17 national supervisory authorities acted as Group Supervisors.
In the course of 2012, EIOPA attended almost all college meetings for 75 groups. The Authority contributed to the work of colleges by developing a catalogue for regular information exchange and by providing specific presentations in colleges about

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EIOPA's regular assessment of risks faced by the EEA insurance industry, including the explanation of EIOPA Risk Dashboard results.
The Report concludes that despite the uncertainty over the exact date for the Solvency II implementation, supervisors involved in colleges are making great efforts to prepare for the implementation of the new framework and in particular, during the pre-application process, to prepare for the use of internal models under Solvency II. Nevertheless, EIOPA observed differences between colleges in the scope and frequency of information exchange as well as in the approaches taken towards risk assessment and analysis.
In this context, the main targets of EIOPA's Action Plan for 2013 are to develop in each college a common understanding on risk assessment and analysis, to assess the development of a coordination arrangement between supervisors for the interim period and to further align the work on the pre-application of Internal Models.
Gabriel Bernardino, Chairman of EIOPA, said: "The strategic goal of EIOPA's college work is to set up consistent, coherent and effective EEA-wide supervision of cross-border insurance groups for the benefit of both group and solo supervision. National supervisors and EIOPA have made relevant progress in 2012 and the Action plan for 2013 aims to improve further the work of colleges in a challenging and demanding environment".

Note for Editors:

European Economic Area (EAA) consists of 27 EU Member States as well as Iceland, Liechtenstein and

Norway

Internal model - In Solvency II insurers will be allowed to calculate their Solvency Capital Requirement using an internal model. This model should be approved by the relevant supervisory authority

Pre-application for internal models is a process of informal dialogue between an insurer and a relevant supervisor. During the pre-application process the company informs the supervisor about the internal model it intends to use and the supervisor assesses how well the insurer is prepared for the application and points out the vulnerabilities of the suggested model

EIOPA Risk Dashboard contains a common set of quantitative and qualitative indicators that help to identify and measure systemic risk

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The European Insurance and Occupational Pensions Authority (EIOPA) was established as a result of the reforms to the structure of supervision of the financial sector in the European Union. The reform was initiated by the European Commission, following the recommendations of a Committee of Wise Men, chaired by Mr. de Larosière, and supported by the European Council and Parliament.

EIOPA is part of the European System of Financial Supervision consisting of three European Supervisory Authorities, the National Supervisory Authorities and the European Systemic Risk Board. It is an independent advisory body to the European Parliament and the Council of the European Union.

EIOPA's core responsibilities are to support the stability of the financial system, transparency of markets and financial products as well as the protection of insurance policyholders, pension scheme members and beneficiaries.