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European Insurance and Occupational Pensions Authority

527

Q&A

Question ID: 527

Regulation Reference: Guidelines on reporting for financial stability purposes

Article: 35

Status: Final

Date of submission: 05 Feb 2016

Question

We understand that the reporting entities for 2016 are to be identified according to GL 18 ("Size thresholds for reporting in 2016"). Future reassessments of the sample are to be performed according to GL 3 ("Inclusion in the sample following the size threshold") and GL 4 ("Exclusion from the sample following the size threshold").

We understand that such reassessments are to be performed first on basis of the Solvency II balance sheet per 2016-12-31 ("at the end of a fincancial year", cf. 1.25/1.27) and NOT on basis of the opening balance sheet of the day 1 reporting per 2016-01-01.

Does this reflect the understanding of EIOPA, respectively of the FSC?

EIOPA answer

For the first reporting instances (2016), the selection is based on the latest annual information available from the solvency regime previously in place (GL18). This is likely to be 31.12.2015 data, but bear in mind that the NSA needs to inform insurers in due time (GL18 1.53), so earlier data points might also be considered. The opening balance sheet will not be available for this assessment.

Future reporting thresholds are indeed defined by the Solvency II balance sheet at the end of a financial year. As Guideline 4 (inclusion in the sample) foresees that insurers would be required to report from Q3 only, NSAs would be in a position to use the balance sheet from 31.12.2016 to identify new insurers to the sample.

However, Guideline 5 (exclusion from the sample) states that insurers that are excluded from the sample following the size threshold may end reporting already “starting from the first quarter of the following financial year”. In this case, prudential group reporting will generally not be available in time to notify insurers. It is therefore foreseen that exclusion from the sample will be based on total assets reported for FS reporting or for solo prudential reporting (which will be available before the end of Q1).