EIOPA recommends Bulgaria’s FSC review its supervisory process for assessing undertakings’ solvency positions

Written by Adam Cadle

15/01/2025

EIOPA has issued a recommendation to Bulgaria’s Financial Supervision Commission (FSC) urging the supervisor to review its supervisory processes regarding the assessment of (re)insurers’ solvency positions.

The recommendation follows a review by the FSC of a Bulgarian reinsurance undertaking’s solvency simulation. In EIOPA’s view, the review was too superficial and did not reflect the due diligence expected of a supervisor when verifying the solvency of a supervised entity proportionate to the nature, scale and complexity of the situation.

EIOPA has urged the FSC to revise its supervisory review process regarding the verification of undertakings’ and groups’ solvency position to ensure – under a prospective and risk-based approach proportionate to the nature, scale and complexity of the undertaking – that (re)insurance undertakings under its supervision are compliant on a continuous basis with the regulatory solvency requirements.

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