Insurance Europe has responded to a consultation paper conducted by the European Insurance and Occupational Pensions Authority (EIOPA) on its statement on the supervision of run-off undertakings.
Overall, the industry welcomes EIOPA’s efforts to create a level-playing field with the same quality of standards for the run-off sector, as this will be helpful for the long-term stability and success of this segment of the market. The industry also supports the strengthening of expertise on run-off businesses, as this will allow for more effective supervision.
A good, adequate capital base of the acquirer is of utmost importance to protect policyholders covered by the portfolio involved in the transfer. In general, the procedures currently in place in the EU allow for transfers at a reasonable cost and with a reasonable degree of administrative burden. This should be maintained to safeguard the international competitiveness of the European (re)insurance industry.
Less prescriptive wording should also be used across the supervisory statement, since its purpose should be to promote supervisory convergence of existing requirements, and not the establishment of additional rules for supervised entities or supervisors.