EIOPA estimates its needs for fulfilling its duties for Solvency II implementation

9 May 2015 — Adina TUDOR
The European Insurance and Occupational Pensions Authority (EIOPA) published a Report on Staffing and Resources Needed to Accomplish Tasks in Accordance with Article 310a of the Solvency II Directive.

The purpose of this report is to provide EU Institutions with an assessment of EIOPA's staffing and resource needs for taking up its new powers and duties in insurance regulation and supervision, according to EIOPA's representatives. It also includes proposals on how these staffing and resource needs can be fulfilled.

The outcome underlines the material demands, both in terms of expertise and financial resources that must be met for an appropriate fulfilment of these duties and powers. It calls for urgent action from EU institutions to provide EIOPA with such resources.

Based on a robust analysis of priorities, efficiencies, structural demands, and the potential impacts of non-delivery and staff reallocations, EIOPA concludes that there is a shortfall in its budget and human resources in 2015 of 10 staff members and over 2 million euros, according to the official document.

This gap, if not addressed, could have unintended negative consequences for the insurance sector, as EIOPA would not be in a position:
  • to perform a timely and sound review of Solvency II standard formula calibrations;
  • to declare the existence of exceptional adverse situations, which is a pre-condition to extend the recovery period for companies with deteriorating solvency positions;
  • to continue ensuring a robust process for the calculation of relevant risk free interest rate term structures; 
  • to deal with unplanned equivalence assessments.
The application of Solvency II represents the challenging transition for EIOPA from the development of the regulation to implementing and improving the tools, processes and structures necessary for the sound and consistent implementation of the new regulation throughout the Union. EIOPA was granted by the European Commission the status of a 'New Task agency', representing the additional tasks the Authority would be assuming for the period 2013-2020.

Click here to view the full report.

1827 views
Share |