- Reporting has been the pillar of SII that has had least attention by firms to date
- Recent papers will help address this; however there is continued uncertainty over some key requirements
Today’s package of papers on the draft Pillar 3 requirements released by the European Insurance and Occupational Pensions Authority (EIOPA) complement yesterday’s Own Risk and Solvency Assessment (ORSA) paper in providing further clarity on some of the more complex areas of Solvency II.
Danny Clark, insurance partner at KPMG, commented: “The release of today’s consultation paper package is a very positive move by EIOPA to get the industry engaged and drive the Solvency II debate forward. Pillar 3 and ORSA have been the two missing parts of the Level 3 guidance and moves to finalise these requirements will give some much needed clarity on the final shape of Solvency II.
“Some smaller insurers will welcome the proposal to eliminate quarterly reporting of investments on a security-by-security basis, although it appears that many larger companies will still need to provide this information every quarter. Insurers still face an enormous level of uncertainty on Solvency II which is holding up their implementation plans. There are a number of key areas still open to change awaiting the finalisation of the level 2 implementing measures and we still have to see EIOPA’s consultation on reporting for financial stability purposes, expected in December. In addition, the European Parliament is a key stakeholder and has expressed different views on some key areas. It is time for all parties to work together to issue final guidance on all aspects of the directive so companies can action their plans with confidence – something they can’t do yet.
“The adoption of Pillar 3 requirements marks an important milestone for the industry across Europe. We are getting closer to having a transparent and consistent reporting method to provide timely and relevant information about the solvency and risk position of insurance companies. Today’s consultation paper is helpful in providing more clarity about EIOPA’s position. A key question remains regarding what reporting will be required in 2013. Certainty here would be of real value to both preparers and users of solvency information.”
Notes to editor
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