The CEA pushed out their annual report today – some very convenient Solvency II and other insurance undertaking-related progress summaries with regards to their lobbying progress.
Solvency II Points;
- Commission reiterated that the industry should not need to raise additional capital for Solvency II (supporting their view on inclusion of EPIFP in Tier 1, contrary to EIOPA’s wishes
- Impact assessment will be published when the Commission puts out the Level 2’s later this year
- “Large part” of the CEA’s Level 3 lobbying work has been on Pillar 3 reporting templates (two rounds of consultation). For some issues they have argues for exclusions on the grounds of utility or cost, as opposed to confidentiality
- Submitted responses for Level 3 ORSA, System of Governance, Own Funds and Internal Models sounds like these were priority 2.
- CEA highlights its desire for transitional measures in; hybrid capital; internal models; equivalence and supervisory reporting
- Commission aims to finalise technical work on L2 this month, CEA provide, in some detail, their lobbying views on; Long-term guarantees; Car Risk; Non-life premium and reserve risk; complexity; EPIFP; Contract boundaries
- Big reliance throughout the document on CEA’s preferred version of Solvency II application as the supporting excuse for opposing SIFI, Financial Services Tax, extension of Sol II to IORPs and Insurance Guarantee Scheme draft legislation
- Submitted comments to the IAIS on their ICP consultations for global supervisory convergence (they note that it is “moving in the same direction as Solvency II”, whereas I thought the ICPs were pretty much a photocopy!)
- They note that, unfortunately, Life Insurance products will remain in the scope of EU Savings Directive legislation, as the current impasse is unrelated.
- Very non-committal on progress of the VAT directive, which doesn’t sound promising for “insourcing” of insurance administration
- On FATCA, they give the impression that their best efforts will be to secure some exemptions for small and irrelevant lines of business, rather than to lobby the USA into submission on this incredibly onerous piece of draft legislation.
- Some constructive effort in the field of cross-border distribution via Insurance Mediation Directive
- Potential for increased compliance risk off the back of Test Achats ruliing