What is eiopa Solvency II?

Solvency II is the prudential regime for insurance and reinsurance undertakings in the EU. Solvency II sets out requirements applicable to insurance and reinsurance companies in the EU with the aim to ensure the adequate protection of policyholders and beneficiaries.

What are eiopa guidelines?

The Guidelines ensure the common, uniform and consistent application to the PEPP supervisory reporting regarding the details of the nature, scope and format of the information to be submitted by the PEPP providers to the competent authorities at predefined intervals and upon occurrence of…

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 are the Solvency II requirements?

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 are the three pillars of Solvency II?

A three-pillar structure has been adopted for the Solvency II regulatory framework,: quantitative requirements (Pillar I), governance of the undertaking and supervisory activity (Pillar II) and supervisory reporting and public disclosure (Pillar III).

What is Solvency II Pillar 1?

Pillar 1 of Solvency II requires businesses to calculate their Solvency Capital Requirement (SCR), using either the Standard Formula (determined by the regulator) or a (Partial) Internal Model (calibrated by the insurance company). The Minimum Capital Requirement (MCR) must also be calculated.

Who does solvency 2 apply to?

Solvency II will apply to most insurers and reinsurers with their head office in the European Union (EU), including mutuals, and companies in run-off unless their annual premium income is less than €5 million.

How is solvency 2 calculated?

Who is subject to Solvency II?

How is Solvency 2 calculated?

Is Solvency II a law?

Solvency II is a Directive in European Union law that codifies and harmonises the EU insurance regulation. Following an EU Parliament vote on the Omnibus II Directive on 11 March 2014, Solvency II came into effect on 1 January 2016.

What is a good solvency ratio?

Acceptable solvency ratios vary from industry to industry, but as a general rule of thumb, a solvency ratio of greater than 20% is considered financially healthy. The lower a company’s solvency ratio, the greater the probability that the company will default on its debt obligations.

What is the scope of EIOPA’s Solvency II opinion?

At the request of the Commission, the scope of EIOPA’s Opinion is wider than that provided for in the Solvency II Directive. 1.4 EIOPA provides this Opinion to the Commission in accordance with Article 16a of Regulation (EU) No 1094/2010. Prudential context

What is the purpose of Solvency II in the EU?

Solvency II is the prudential regime for insurance and reinsurance undertakings in the EU At the core of the new regulatory framework Solvency II is an economic risk-based approach, which should enable the assessment of the “overall solvency” of insurance and reinsurance undertakings through quantitative and qualitative measures.

How to export articles for Solvency II Directive?

You can export articles in PDF by checked the related tickbox. 1. Calculation of the Basic Solvency Capital Requirement 2. Calculation of the non-life underwriting risk module

Are there public disclosure requirements for Solvency 2?

The following public disclosure requirements are applicable to all undertakings subject to Solvency II Directive: