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EIOPA statement on measures to mitigate the effects of the Corona virus on t



Continuity of business

In view of the difficult market and operating conditions, EIOPA urges insurance companies to maintain their services to customers and, if necessary, to take measures to maintain business continuity. companies will EIOPA:

  • Coordinate the national competent authorities (" NCA ") to be flexible in terms of reporting requirements. In particular, national competition authorities will ease the deadlines for submitting regulatory reports and publication by the end of 201
    9.
  • Continue to (i) limit its requests for information and consultation to the industry to essential elements needed to assess the effects of covid- The 19 crisis in the insurance market, (ii) extend the deadline for the holistic impact assessment for the 2020 Solvency II Review to 1 June 2020 and (iii) in the coming days announce details of postponing deadlines for additional reporting and information requirements. [19659006] Solvency and capital position
    • Insurance companies are reminded of the obligation to continuously have sufficient capital base to cover their solvency capital requirement. This will enable insurance companies to absorb significant losses and therefore provide confidence in policyholders and beneficiaries.
    • EIOPA also advises insurance companies to introduce policies to maintain their capital position in balance with the protection of the insured. Among other things, prudent dividends, variable remuneration and other distribution policies.
    • As a reassuring message, EIOPA notes that the results of recent stress tests showed that the insurance sector is well-capitalized and can withstand this type of reasonable and difficult situation. In any case, EIOPA recalls that the Solvency II framework:
      • Provides a rating of prudential intervention regarding solvency capital requirements and minimum capital requirements that would allow flexibility in the event of exceptional situations. For example, the recovery period for affected insurance companies may be extended by the corresponding national competition authority.

    Finally, EIOPA concludes its statement by providing information on the ongoing and close monitoring of the coronavirus / COVID-19 crisis in coordination with national authorities, other European supervisory authorities and with the European Systemic Risk Board, which will allow EIOPA to: need to take further measures to mitigate the effects of market volatility on the insurance sector in Europe and to protect policyholders' protection .

    Author by Luis Alfonso Fernandez and Jorge Etreros Arnanz

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