EIOPA opens consultation on criteria for selecting insurers to run macroprudential analyses

The European Insurance and Occupational Pensions Authority (EIOPA) has opened today a consultation regarding the criteria based on which national supervisors may request (re)insurers and insurance groups to perform macroprudential analysis in their Own Risk and Solvency Assessments (ORSA) and in their application of the Prudent Person Principle (PPP).

The Consultation Paper proposes both quantitative and risk-based criteria to determine which undertakings and groups should consider macroprudential elements in their ORSA and in how they apply the PPP.

The quantitative criterion foresees a threshold of €12 billion in total assets, which aligns with the criteria used in identifying undertakings for financial stability reporting. Further qualitative criteria are proposed to allow enough leeway for supervisory judgement and to incorporate risk-based considerations into the selection process. These criteria are expected to be used by national supervisors to remove or add (re)insurers to the list of undertakings that need to perform macroprudential analyses. 

A combination of the above quantitative and qualitative criteria will enable a proportionate application of the Regulatory Technical Standards without imposing unnecessary requirements on undertakings.

EIOPA invites stakeholders to provide their feedback on the Consultation Paper by responding to the questions via the online surveys no later than 9 January 2025. All responses will be published on EIOPA’s website unless otherwise requested.

Go to the Consultation

Background

Solvency II serves as the prudential framework for insurers and reinsurers across the EU. It is designed to protect policyholders and beneficiaries while safeguarding the stability of the European insurance sector through robust regulations and effective supervision.

In 2021, the European Commission initiated a comprehensive review of Solvency II to enhance the sector’s resilience to future crises, further strengthen policyholder protection, and simplify rules where appropriate. Following the adoption of the political agreement by the European Parliament, EIOPA is now providing its technical advice.

At the beginning of October, EIOPA already launched a number of consultations related to the Solvency II review. To see these, click here.