EIOPA Launches Public Consultation on Supervisory Statement on Differential Pricing Practices
The European Insurance and Occupational Pensions Authority ("EIOPA") has launched a three-month long public consultation regarding a draft supervisory statement on differential pricing practices.
Through this consultation EIOPA aims to strengthen consumer protection by putting an end to discriminatory consumer treatment and to promote increased unity in the supervision of differential pricing practices. Although EU legislation allows for some forms of differential price practices, EIOPA believes that some of the practices being implemented fall short of complying with the applicable framework, leading to the unfair treatment of customers.
EIOPA invites stakeholders to give their feedback by 7th October 2022 by responding to the online survey.
EIOPA publishes staff paper on the Proposal for an Insurance
Recovery and Resolution Directive
The European Insurance and Occupational Pensions Authority (''EIOPA'') issued a staff paper providing an overview of the proposal for an Insurance Recovery and Resolution Directive ( ''IRRD'') which was put forward by the European Commission in September 2021.
The document delineates that the IRRD is a comprehensive framework which takes into account the insurance-specific features and brings with it several important benefits. These are outlined in the staff paper. EIOPA welcomes the proposal for the IRRD as it addresses all relevant building blocks of a recovery and resolution framework and focuses on cooperation and coordination among authorities.
EIOPA publishes technical documentation of the methodology to
derive EIOPA's risk-free interest rate term structures
In accordance with the Solvency II Directive, the European Insurance and Occupational Pensions Authority (EIOPA) has published technical information regarding the relevant risk-free interest rate term structures (RFR) with reference to the end of June 2022.
The technical information relating to RFR term structures is used to calculate the technical provisions for (re)insurance obligations and aims to guarantee consistent calculation of technical provisions across Europe.
EIOPA issues update of the symmetric adjustment of the equity
capital charge for Solvency II
The European Information and Occupational Pensions Authority (''EIOPA'') has published technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of June 2022.
The symmetric adjustment is mainly regulated by Article 106 of Directive 2009/138/EC (Solvency II Directive) and Article 172 of the Delegated Regulation of Solvency II.
EIOPA consults on supervisory statements on exclusions in insurance
products arising from systemic events and on the management of
non-affirmative cyber exposures
The European Insurance and Occupational Pensions Authority (''EIOPA'') published two consultation papers on "the supervisory statement on exclusions in insurance products related to risks arising from systemic events" (the ''First Supervisory Statement'') and "the supervisory statement on the management of non-affirmative cyber underwriting exposures" (the ''Second Supervisory Statement'').
The First Supervisory Statement brings to light the ever-increasing risk of insurance products becoming unaffordable or unavailable for systemic events. It also highlights the consumer detriment caused by ambiguous contractual terms.
The First Supervisory Statement further aims to promote supervisory unification in how national competent authorities assess the treatment of exclusions in insurance contracts that arise from risks following systemic events.
The Second Supervisory Statement deals with the management of non-affirmative cyber underwriting exposures and focuses on supervisory expectations in this regard. EIOPA encourages national authorities to give importance to insurance undertakings' assessment of the terms and conditions of their existing insurance products.
EIOPA emphasises the need for staff training, awareness amongst the administrative, management or supervisory bodies and the focus on on-going product development and monitoring.
EIOPA issues guidance on the integration of customer's
sustainability preferences under the IDD
On 20 July 2022 the European Insurance and Pensions Authority (''EIOPA'') publishes its guidance document on integrating the customer's sustainability preferences in the suitability assessment under the Insurance Distribution Directive (IDD) (the ''Guidance Note'').
The Guidance Note aims to promote the correct implementation of the new rules that are coming into effect about customer's sustainability preferences and mainly provides guidance on, inter alia:
- how to help customers better understand the concept of "sustainability preferences" and their investment choices;
- how to collect information on sustainability preferences from customers;
- how to match customer preferences with products, based on product disclosures under the Sustainable Finance Disclosure Regulation (SFDR).
The Guidance note includes a feedback statement aimed at addressing the concerns and issues that were highlighted by stakeholders in a public consultation on draft Guidelines on integrating the customer's sustainability preferences earlier this year.
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