Is eiopa a regulator?

The European Insurance and Occupational Pensions Authority (EIOPA) is a European Union financial regulatory institution that replaced the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). It is established under EU Regulation 1094/2010.

What is solvency capital requirement?

A solvency capital requirement (SCR) is the total amount of funds that insurance and reinsurance companies in the European Union (EU) are required to hold. The solvency capital requirement covers existing business as well as new business expected over the course of 12 months.

How does Solvency II work?

Under Solvency II, capital requirements are determined on the basis of a 99.5% value-at-risk measure over one year, meaning that enough capital must be held to cover the market-consistent losses that may occur over the next year with a confidence level of 99.5%, resulting from changes in market values of assets held by …

What is IAIS technology?

International Association of Insurance Supervisors (IAIS) It is the international standard-setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector.

Who regulates eiopa?

EIOPA is an independent advisory body to the European Commission, the European Parliament and the Council of the European Union. It is one of the EU Agencies carrying out specific legal, technical or scientific tasks and giving evidence-based advice to help shape informed policies and laws at the EU and national level.

What does Solvency II mean for insurance companies?

Solvency II introduces new and robust frameworks for insurance firms in the EU based on the risk profile of each individual insurance company with the objective to promote comparability, transparency and competitiveness. Solvency II amended under Omnibus II Directive 2014/51/EU replaces the existing directives known as Solvency I.

What are the requirements for Solvency 2 regulatory reporting?

Requirements under Solvency II are expected to be reasonably . well aligned with IFRS in a number of areas, although the level of detail required under Solvency II may be greater. Materiality is a key judgement . The level of regulatory reporting and the application of the principle of proportionality is centred on a judgement

When did the Solvency II Directive come into effect?

The Solvency II Directive, along with the Omnibus II Directive that amended it became a law on March 31, 2015. On April 1, 2015 the approval processes began, and after years of delay and negotiations, the Europe-wide capital regime for insurance companies came into effect on January 1, 2016.

What should be included in a Solvency 2 data directory?

A Solvency II data directory needs to hold a description of the usage of data items and their nature and properties. It should set out the lineage, or data-flow, of these items from source to target. Quality criteria, thresholds and checks for data items are also likely to be defined within the Solvency II data directory.