EIOPA delivers first set of advice to the European Commission on Solvency 2 Delegated Regulation

The European Commission requested EIOPA to provide technical advice as part of its review of the Solvency Capital Requirement. Following a public consultation, EIOPA has provided advice on the following areas:

  • Simplified calculations;
  • Reducing reliance on external credit ratings;
  • Exposures guaranteed and exposures to regional governments and local authorities;
  • Risk-mitigation techniques;
  • Undertaking specific parameters;
  • Look-through for investment related undertakings;
  • Loss-absorbing capacity of deferred taxes: factual information only; and
  • Impact assessment.

EIOPA is providing its advice in two tranches. This advice is the first tranche. The second tranche will be sent to the European Commission by the end of February 2018.