The European Insurance and Occupational Pensions Authority (EIOPA) has published today a Note entitled "Need for high quality public disclosure: Solvency II's report on solvency and financial condition and the potential role of external audit". The purpose of this Note is to stress the importance of high quality public information and the relevant use of external audit services in relation to Solvency II public disclosures.
In the Note EIOPA points out that public disclosure under Solvency II can be considered as a paradigm shift in communication between (re)insurance companies and their stakeholders. It provides consumers, and all other stakeholders, with the opportunity to receive consistent and comparable information on the solvency and financial condition of those companies.
EIOPA believes that external audit can be a powerful tool in order to ensure high quality of public information, also in the context of Solvency II.
To foster transparency as one of the Solvency II cornerstones, EIOPA and its members will be very attentive to the actual application and the quality of public disclosure by (re)insurance undertakings. EIOPA will be evaluating the implementation of Solvency II public disclosure and, in case of diverging quality of public disclosures, will consider taking further regulatory actions.
The full text of the Note can be viewed here