MFSA: Guidelines on Payment of Application Fees, Supervisory Fees or Penalties using the Bill Payment Facility – Applicable to BOV Customers
The MFSA is introducing a BOV Bill payment facility with the aim of facilitating the processing of application fees, supervisory fees, or penalty payments through digital banking. This enhancement is envisaged to ensure that Authorised Persons receive corresponding receipts allocated against actual fees due, more punctually and efficiently.
Further improvements will be implemented in the near future to extend this facility to other banks.
The Guidelines can be accessed here
EIOPA: Methodology for the Value for money in the unit-linked market
Following the publication of its Supervisory Statement on Value for Money in November 2021, EIOPA issued a methodology to ensure a consistent and convergent approach towards the implementation of the Supervisory Statement. This methodology can be used by National Competent Authorities as a basis to assess value for money in the unit-linked market.
This can also be of use and assistance for insurance manufacturers and distributors in implementing their own policies and when performing their value for money assessments to determine whether their products are aligned with the target market's needs, objectives and characteristics before they bring them to the market or when performing product reviews.
This Methodology can be accessed here.
EIOPA: Thematic Review on Credit Protection Insurance (CPI) sold via banks
Through the support of the National Competent Authorities ("NCAs"), EIOPA conducted a thematic review on the functioning of the EU market for credit protection insurance products sold via banks acting as insurance intermediaries (the "Thematic Review").
The Thematic Review focused on identifying potential sources of conduct risk and consumer detriment in order to allow EIOPA and NCAs to take relevant policy and supervisory measures which may be required. It also assessed whether consumers are being treated fairly and being placed at the heart of 'bancassurance' business model.
EIOPA expects all insurers and banks acting as insurance distributors to fully comply with the Insurance Distribution Directive, including the product oversight and governance requirements, to take action to address issues with high remuneration, and prevent detrimental conflicts of interest. EIOPA also expects the industry to improve consumer outcomes with CPI products, making sure they meet the needs of the target market.
This Thematic Review can be accessed here.
EIOPA: Single programming document 2023-2025
The Single Programming Document 2023-2025 sets out EIOPA's strategy and work programme for the coming years and includes the Annual Work Programme for 2023. In a context characterised by evolving challenges, risks and opportunities EIOPA will focus on managing uncertainty in times of transformation to ensure robust insurance and pensions sectors in Europe.
EIOPA will work with a range of stakeholders to mitigate these risks and to ensure that the insurance and pension sectors can fulfil an essential role in underpinning a strong and sustainable recovery in Europe, for the benefit of citizens, business, and the economy.
This document can be accessed here.
EIOPA: Strategy 2023-2026
EIOPA's Strategy aims to enhance the key role of insurers and pension funds in managing and financing a fair economic transition, thus contributing to meet society's need for insurance protection, as well as to achieve the overarching objective of strengthening the European Capital Markets Union.
EIOPA will also continue to identify and address global and sector-specific risks, as well as to cope with growing economic uncertainties, in order to strengthen society's resilience and safeguard trust in the financial system.
Although a challenging task, EIOPA aims to raise awareness and contribute to finding solutions to address protection gaps in insurance and pensions. There are a number of risks, ranging from an ageing population to climate change, and from cyber to pandemic, which can have potentially systemic impacts, and therefore require improved insurance coverage solutions.
The Strategy can be accessed here.
International Association of Insurance Supervisors: Paper on Insurance Sector Operational Resilience
The International Association of Insurance Supervisors (IAIS) published a draft paper on 13th October 2022, whereby it:
- dentified the issues which impact operational resilience in the insurance sector;
- provided exemplary approaches towards these developments; and
- highlighted the lessons learned throughout the pandemic.
The paper addresses three specific operational resilience topics relating to areas the IAIS operational resilience task force considers as matters of significant and increasing operational risk: cyber resilience, third-party outsourcing and business continuity management.
This Draft Paper can be accessed here.
IAIS: The role of insurance supervisors in multi-stakeholder approaches to address pandemic protection gaps
The International Association of Insurance Supervisors (IAIS) and Access to Insurance Initiative published a Joint Note on the role of insurance supervisors in multi-stakeholder approaches to address pandemic protection gaps
The Joint Note examines the role insurance supervisors could play in the design, development and implementation of insurance-based programmes for pandemic risk. The note focuses on gaps in coverage for types of risk where diversification is more difficult to achieve, particularly coverage for non-damage business interruption losses in the context of pandemics. In this regard, the note draws parallels with supervisory approaches to address other types of risk that challenge the principle of diversification.
This Joint Note can be accessed here.
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