Background information and data description

• Pages: 61-64

6.BACKGROUND INFORMATION AND DATA

DESCRIPTION

OVERVI EW AND DATA RE

INSURANCE SECTOR

A publishes statist ics based on quantitative So lven-

cy II reporting from insurance undertakings and groups

in the Europ ean Union and the Europ ean Economic Area

(EEA). These st atistics are published o n aquarterly basis.

Every publication is accompanied by anote describing

the key aspects of the statistics published. The tables

and charts are available in PDF and Excel for mat and are

based on information from the statistics at the publica-

tion d ate.40

The new supervisory regime Solvency II came into full

force on 1 January 2016 as aresult of timely preparation

and app ropriate transitional p eriods.

The Solvency II Directive (Directive 2009/138/EC) intro-

duces advanced solvency require ments for insurer s based

on aholistic risk assessment, and imposes new assess-

ment rules for assets and liabilities, which must be as-

sessed at market v alues.

Currently the following type of information is available:

Indicators based on Individual insurance undertak-

ings (solo data)

›Quarter ly and annual publicati on of statisti cs based

on solo prudential reporting data and available on

acountr y-by-country b asis.

Indicators based on Insurance groups ( group data)

›Annual publication of key indicators based o n group

reporting and available at EEA level from Autumn

2017.

40https://eiopa.europa.eu/Pages/Financial-stability-and-crisis-preven-

tion/Insurance-Statistics.aspx

INDICATORS BASED ON REPORTIN G FOR

FINANCIAL STABILITY PURPOSES

Pursuant to Ar t. 51 Solvency II Directive 2009/138/EC in-

surance co mpanies have to p ublish annual Solvency and

Financial Condition Rep orts (SFCR) for group s as well as

solo reports for its Solvency II regulated legal entities

since May 2017. The structure of this Financial Stability

Report covers Q4 2018 and focuses on European (re)

insurance undertakings and groups that report regular-

ly under Solvency II. EIOPA bases its analysis mainly on

Quarterly Prudential Repo rting Solo (QRS) for Q4 2018.

But as not all templates and/or companies rep ort under

QRS, EIOPA also uses Annual Reporting Solo (ARS) and

Quarterly Financial Stability Reporting Group (QFG) for

some indicators .

Information is pr ovided on dierent sample sizes as some

(re)insurance companies are exempted from quarterly

reporting in accordance with Art. 35 (6). Therefore, the

sample of und ertakings is not id entical in the annual and

quarterly p ublications. Each Figure EIOPA uses in this r e-

port is hence accompanied by a source mentioning the

sample size and ano te on data (if n eeded).

INSURANCE SECTOR

Solvency II has put in p lace long ter m guarantee s (LTG) and

transitio nal measures to ensure an ap propriate treatme nt

of insurance products that include lo ng-term guarantee s

and facilitate a smooth transition of the new regulatory

framework regime. The LTG measures are a permanent

feature of S olvency II, wheare as the transitio nal measures

will be gradually phase d out until 2032 , by which time the

balance sheet p osition of insurance companies will be ful-

ly estimated at market value. Fo r aperiod of 16 years after

the start of Solvency II (re)insurance undertakings may

apply the transitional measure o n the technical p rovisions

and the r isk-free inte rest rate.

NANCIAL STABILITY REPORT

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