EIOPA restates commitment to global Insurance Capital Standard

The European Insurance and Occupational Pensions Authority (EIOPA) will continue to work with its international peers from all continents in order to ensure that the final global Insurance Capital Standard is based on a market-adjusted valuation, that capital requirements are sufficiently robust and risk-sensitive, and that internal models are allowed to be used under sound and prudent criteria, EIOPA chairman Gabriel Bernardino has said.

“As it was recognised by the Financial Stability Board in 2013, the development of a sound capital and supervisory framework for the insurance sector is essential for supporting financial stability,” he said. “Since then, the International Association of Insurance Supervisors (IAIS) has embarked on a journey to develop a comprehensive, group-wide supervisory and regulatory framework for Internationally Active Insurance Groups (IAIGs), including a quantitative Insurance Capital Standard (ICS).

"The journey to get where we are has been long. A marathon rather than a sprint. Nonetheless a major milestone was achieved on November 2019 with the agreement of the so-called ICS version 2.0., a consolidated group-wide reference standard with a globally comparable risk-based measure of capital adequacy for IAIGs.

“From a European perspective the successful implementation of Solvency II and its proper fine-tuning and review is our biggest priority and in parallel we remain as strongly committed as ever to the next stages of the ICS journey.”