“The Standard Formula” host Rob Chaplin is joined by Chiara Iorizzo to delve into the crucial, yet complex, public reporting component of Solvency II. This episode explores the Solvency and Financial Condition Report requirements, external audit obligations and the role of the European Insurance and Occupational Pensions Authority in information disclosure.
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In this installment of The Standard Formula’s series on Solvency II, host Robert Chaplin and See more +
“The Standard Formula” host Rob Chaplin is joined by Chiara Iorizzo to delve into the crucial, yet complex, public reporting component of Solvency II. This episode explores the Solvency and Financial Condition Report requirements, external audit obligations and the role of the European Insurance and Occupational Pensions Authority in information disclosure.
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In this installment of The Standard Formula’s series on Solvency II, host Robert Chaplin and Chiara Iorizzo unpack the regime’s public reporting element. As Rob explains, public reporting “bolsters transparency and market discipline across the insurance industry.”
Rob and Chiara cover requirements of the Solvency and Financial Condition Report (SFCR) and discuss some proposed changes to these reporting requirements. They also explore external audit requirements and review the role of the European Insurance and Occupational Pensions Authority (EIOPA) in information disclosure.
Key Points
The SFCR: Rob and Chiara explain the purpose of this mandatory report and detail the five categories of information that it requires of insurers.
Non-Disclosures: There are situations where an insurer does not have to disclose certain information. Chiara breaks down when and how an undertaking might not need to make a disclosure.
External Audits: Solvency II does not require external audits of SFCRs, but many supervisory authorities do.
Regulatory Reforms: On December 31, 2024, updates to several supervisory statements in PRA PS3/24 on reporting and disclosure rules are expected to take effect. Chiara reviews notable changes.
EIOPA’s Duty to Disclose: EU member states must disclose information relating to capital add-ons and limitations or exemptions from reporting. EIOPA then publicly discloses that information to authorities, including the European Parliament. See less -
