Posts Tagged ‘EIOPA’



February 2nd, 2016

Addressing Own Risk and Solvency Assessment/Enterprise Risk Management and Insurance Capital Standard Globally

Posted at 1:00 AM ET

In accordance with the objectives of the National Association of Insurance Commissioners (NAIC) and European Insurance and Occupational Pension Authority (EIOPA), Own Risk and Solvency Assessment (ORSA) is “people and risk-centric,” primarily employing a principles-based approach, as opposed to a rules-based approach. This means that decisions on matters related to risks are largely based on the judgment of individuals relying on underlying facts, as opposed to decisions being made mostly by following intricate sets of rules. This is similar to the principles-based approach taken by International Financial Reporting Standards (IFRS). Although the calculation of the Solvency Capital Requirements (SCR) under Solvency II is rules based, like Insurance Capital Standard (ICS), Solvency II can be a “one size fits all” rules-based approach to capital, especially if the standard formula is used. (Re)insurers will need to find a way to incorporate ICS into their ORSA processes and the vehicle to accomplish this may be through the internal model.

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November 8th, 2011

Continental European Legislative and Judicial Trends: European Insurance and Occupational Pensions Authority: The New Institutional Framework for Supervision of the Insurance Market Within the European Union

Posted at 1:00 AM ET

David Lewin, Managing Director
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While state supervision is no cure for unexpected turbulences in the financial market, it remains an essential tool for the mitigation of financial crisis risks. The recent financial problems in Greece, Portugal, Italy, Ireland and Spain are likely to fuel the call for a well coordinated and strong financial supervision system within the European Union (EU). This is also true in the insurance market, where players invested in mispriced government bonds and are now busy disposing of them.

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