EIOPA, the European Insurance and Occupational Pensions Authority, published on 28 January 2015 the Revised Impact Assessment on the Solvency II Guidelines.
According to Article 16 of Regulation (EU) No 1094/2010 (EIOPA Regulation), the Authority must, where appropriate, analyse the potential costs and benefits of guidelines addressed to National Competent Authorities (NCAs) or financial institutions. Indeed, the document is a comprehensive Report, which collects the Impact Assessment Reports for the Set 1 of EIOPA Guidelines on Solvency II.
All the Impact Assessments presented in the document follow a common structure, around which IA Reports can slightly differ in some formal aspects and sometimes in the allocation of contents. More often, IA Reports differ in the substructure of sections: in some cases there is no substructure and sections consist of a continuous narrative; in other cases sections are divided into paragraphs; in some other cases there is not a real substructure but bold words or underlined phrases.
Generally, the common structure entails six sections:
- Procedural issues and consultation of stakeholders;
- Problem definition;
- Objective pursued;
- Policy options;
- Analysis of impacts;
- Comparison of options.
Sometimes a seventh section, “Monitoring and Evaluation”, can be added, but only where specific details regarding the monitoring of the Guidelines’ implementation and the evaluation of objectives realization have been discussed and adopted.
For the purpose of the Impact Assessment, a baseline scenario was applied as the basis for comparing policy options. The baseline that underpins this revised IA is based on the current situation of EU insurance and reinsurance markets, taking into account the progress towards the implementation of the Solvency II framework.
In particular, the baseline includes:
- The relevant content of Directive 2009/138/EC (as amended by Directive 2014/51/EU);
- The relevant implementing measures.
The full document containing the Revised Impact Assessment on Solvency II Guidelines is available on EIOPA’s website.