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Insurance Regulation

Context

In 2020, despite the considerable volatility in financial markets during the first half of the year triggered by the global Covid19 pandemic, the global insurance sector remained resilient, supported both by supervisory, monetary, and fiscal measures, and the regulatory capital base which was bolstered by the reforms implemented since the 2008 financial crisis.

The regulators globally, are thus committed to complete the delivery of post-crisis reforms i.e., the International Capital Standards 2.0 which are subject to a 5-year monitoring period, and the holistic framework for monitoring, assessing, and mitigating systemic risk in the insurance sector.

However, regulators are paying particular attention to emerging vulnerabilities such as those accelerated by the Covid-19 crisis as well as technological innovation, in addition to cyber and climate risk, in order to adapt national and regional regulatory and supervisory practices accordingly and to achieve consistent approaches for internationally active insurance groups.

Their attention is all the more important because these emerging risks also challenge financial stability and macroprudential supervision, even though some of these risks do not necessarily originate in the financial sphere.

In the EU, these emerging challenges add to an unprecedented monetary condition that have neither not been anticipated in 2016 when Solvency II started to be applied. In addition, despite the favourable political context of the Capital Markets Union, and the fact that the framework was designed to provide accurate risk assessments, EU insurance undertakings have been retreating from investments in long-term projects and companies although life insurance companies are natural long-term investors. The review of Solvency II framework now initiated by the EU Commission, should be the occasion to address those multiple challenges.

Eurofi documents

Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)

Eurofi Views Magazine chapters

Building a more resilient economy: a robust insurance sector and sustainability - September 2024 new

SHIGERU ARIIZUMI - Vice Minister for International Affairs – Financial Services Agency, Japan (J-FSA)

Priorities for the insurance sector - September 2024 new

Challenges facing insurers - February 2024

Jonathan Dixon - International Association of Insurance Supervisors (IAIS) | Gary Anderson - Massachusetts Division of Insurance | Alberto Corinti - Italian Insurance Supervisory Authority (IVASS) | Petra Hielkema - European Insurance and Occupational Pensions Authority (EIOPA) | Hidehiko Sogano - Dai-ichi Life Holdings, Inc. | Mireille Aubry - COVEA

Insurance protection gaps - February 2024

Petra Hielkema - European Insurance and Occupational Pensions Authority (EIOPA) | Carmino Di Noia - Organisation for Economic Co-operationand Development (OECD) | Shigeru Ariizumi - Financial Services Agency, Japan (J-FSA) | Christophe Bories - Ministry of the Economy, Finance and Industrial and Digital Sovereignty, France | Françoise Gilles - AXA Group | Ivo Menzinger - Swiss Re | Penny Seach - Zurich Insurance

Global and Solvency II insurance frameworks - September 2023

Alberto Corinti - Italian Insurance Supervisory Authority (IVASS) | Vicky Saporta - International Association of Insurance Supervisors (IAIS) | Martin Landais - Ministry of the Economy, Finance and Industrial and Digital Sovereignty, France | Pietra Hielkema - European Insurance and Occupational Pensions Authority (EIOPA | Frank Grund - Federal Financial Supervisory Authority, Germany (BaFin) | Mireille Aubry - COVEA

Solvency II revision - September 2022

Markus Ferber - European Parliament | Petra Hielkema - Chairperson - European Insurance and Occupational Pensions Authority | Stéphanie Yon-Courtin - European Parliament | Frank Grund - Federal Financial Supervisory Authority, Germany | Clément Michaud - Chief Financial Officer - Crédit Agricole Assurances | Huw Evans - KPMG in the UK | Gino J. Del Sesto - MetLife