The European Insurance and Occupational Pensions Authority (EIOPA) published on Thursday 21 April its final report on the public consultation on the review of the Contract Limits Directives.
In the course of the 2020 review of Solvency II, the European regulatory reform of the insurance world, EIOPA identified several divergent practices regarding the assessment of contract limits and the evaluation of the best estimate (see other article). Divergent practices require further guidance to ensure convergent application of existing regulations.
According to the report, the national and European trade, insurance or actuarial associations, consultants, lawyers or insurance and reinsurance companies that responded to the consultation mainly commented on the date of application and the assessment of the discernible effect of a cover or financial guarantee on the economy of the contract.
Their main concerns were the resources needed to adapt their systems to the revised guidelines, the need to review the existing portfolio of contracts when the revised guidance is applicable and the potential overlap with the implementation of IFRS 17.
The new and amended guidelines will apply from 1 January 2023, unless the competent national authorities decide otherwise.
Read the report: https://aeur.eu/f/1bi (Original version in French by Anne Damiani)