EIOPA issued consultation (PDF) on criteria to select (re)insurers and insurance groups to perform macroprudential analysis in Own Risk and Solvency Assessments (ORSA).
Also, in their application of Prudent Person Principle (PPP), as per Solvency II.
Follows EC Sep. 2021, adopt comprehensive review, Solvency II rules, see #116624.
Objective of Consultation
Consultation proposes both quantitative and risk-based criteria to decide which undertakings and groups should consider macroprudential elements in ORSA/PPP.
Quantitative criterion foresees a threshold of €12bn total assets, which aligns with the requirements used in identifying undertakings for financial stability reporting.
Also, qualitative criteria proposed to allow enough flexibility for supervisory judgment and to incorporate risk-based considerations into the selection process.
EIOPA expects this criteria to be used by national supervisors to remove or add (re)insurers to list of undertakings that need to perform macroprudential analyses.
Combining quantitative and qualitative criteria will enable proportionate application of Regulatory Technical Standards without unnecessary requirements on undertakings.
Effectiveness
EIOPA invites stakeholders to provide their feedback on the Consultation Paper by responding to the questions through online surveys no later than Jan. 9, 2025.
