Insurance Europe

Showing posts with label Insurance Europe. Show all posts
Showing posts with label Insurance Europe. Show all posts

Monday, 7 October 2019

EU insurers call for flexibility on implementation timeline for EIOPA cloud outsourcing guidelines

European insurers say they will likely need additional time to implement proposed guidelines on outsourcing to cloud service providers, which the European Insurance and Occupational Pensions Authority (EIOPA) is currently developing. Based on past industry experience, this will be necessary to facilitate a smooth transition from current operational practices.
Insurance Europe said that the guidelines should be limited to instances of material outsourcing: ie, outsourcing that encompasses critical and important operational functions or activities only to ensure legal certainty and consistency with Solvency II. Non-material outsourcing to the cloud should fall outside of their scope.
Cloud services should only be regarded as outsourcing if there are certain risks associated with cloud services that may have a material impact on either the insurer’s ability to comply with regulatory requirements or its customers. Insurance Europe added that clear definitions are necessary to ensure that the scope of application is sufficiently precise.
In the context of access and audit rights, Insurance Europe called on EIOPA to encourage and allow greater reliance on the use of third-party certification.

Wednesday, 2 October 2019

EU insurers paid out almost 3 billion euro per day in 2018

European insurers paid out €1 069bn in claims and benefits to insureds in 2018. That is equivalent to 2.9bn per day and represents a 3.1% increase on 2017, according to the latest edition of Insurance Europe’s Key Facts booklet, which has just been published.
According to the booklet, which contains preliminary figures for the European insurance market in 2018, life insurers paid out €705bn — a 2.6% increase — in benefits to insureds, providing them with capital and/or annuities. Property and casualty (P&C) claims paid increased by 5.6% to €253bn and health claims paid increased by 4.0% to €111bn.
European direct gross written premiums amounted to €1 311bn in 2018, of which €764bn were life premiums, €407bn were P&C and €140bn were health. Total premiums increased 6.2% on 2017, with life premiums growing 6.7%, P&C 5.7% and health 4.8%.
In addition, European insurers’ investments remained broadly stable, at €10.3 trillion.

Monday, 30 September 2019

Solvency II proportionality principle key for avoiding excessive burden, but doesn’t work in practice

Insurance Europe and AMICE have issued a joint call for the EC to improve Solvency II proportionality rules to ensure that insurers are not disproportionately burdened by the regulatory framework.
While Solvency II and, in particular, its risk-based approach is supported by the EU insurance industry, changes are needed to rules on proportionality. This is because currently the sheer volume of rules imposed on companies can be disproportionate and unnecessarily burdensome relative to their activities and risks.
Proportionality is a vital element of Solvency II that was included to enable national supervisory authorities (NSAs) to exercise a proportionate application of regulatory requirements imposed on insurers, in relation to the scale, nature and complexity of their activity. As such, it can help all insurers to avoid unnecessary costs and can avoid smaller insurers being driven out of business due to regulatory requirements which are excessive relative to their activity.
EU insurers have warned that the principle of proportionality is, in practice, hardly ever applied under Solvency II and have jointly called on the European Commission to make changes. The industry’s proposed improvements would help to ensure that the principle of proportionality is applied effectively and consistently across all member states and across all three pillars of Solvency II. 

Wednesday, 25 September 2019

IFRS 17: Global insurance associations call for delay so vital improvements can be made to standard

A wide group of international insurance associations - including Insurance Europe - has called on the International Accounting Standards Board (IASB) to make further improvements to International Financial Reporting Standard (IFRS) 17 – insurance contracts - and to change its effective date to 1 January 2023.
While recognising that the IASB has made improvements in a number of areas, the associations warned that a number of significant issues have not been addressed and added that additional changes are still required to obtain a high-quality standard that can be implemented at a reasonable cost.
The associations called on the IASB to take the time necessary to make the changes needed to ensure a strong global commitment to the new standard. In addition, the significant implementation concerns that have been raised by the industry remain and must be taken into account. Therefore, the associations called for a delay to the global effective date of IFRS 17 (and IFRS 9 - financial instruments - for insurers) until 1 January 2023, in order to ensure a successful implementation.
The other associations are:
  • Canadian Life & Health Insurance Association
  • Financial Service Council of New Zealand
  • Insurance Bureau of Canada
  • Insurance Council of New Zealand
  • Insurance Council of Australia
  • Korea Life Insurance Association
  • National Association of Mutual Insurance Companies

Wednesday, 11 September 2019

IFRS 17: EU insurers say some improvements welcome, but major issues still to be addressed

Insurance Europe and the CFO Forum have issued a joint call for further improvements to be made to International Financial Reporting Standard (IFRS) 17 — insurance contracts — and have raised concerns over its timing.
European insurers submitted a joint response to a draft comment letter written by the European Financial Reporting Advisory Group (EFRAG) in response to the International Accounting Standards Board's (IASB) proposed amendments to IFRS 17.
In their response, Insurance Europe and the CFO Forum argue that while the IASB has proposed several helpful improvements in its IFRS 17 exposure draft, unfortunately a number of issues remain unaddressed and further changes are needed.
Three issues — level of aggregation, transition and presentation — were given particular emphasis because they will have the largest overall impact on the operational complexity and costs of implementing IFRS 17.
European insurers also commented on other areas of concern that were identified by the industry during EFRAG’s field testing exercise and implementation process, but which have not been fully or only partially addressed by the IASB.
The joint response also included Insurance Europe’s view that a two-year delay is needed, which therefore leads to a global effective date of 1 January 2023 for IFRS 17 (and IFRS 9 — financial instruments, for insurers).

The full letter is available here and the appendices here