EIOPA opens consultation on insurer criteria to run macroprudential analyses

Written by Michael Griffiths

18/10/2024

EIOPA has opened a consultation regarding the criteria for which national supervisors may request insurers to perform macroprudential analysis.

This is reference to insurer’s own risk and solvency assessments (ORSA) and in their application of the prudent person principle (PPP).

The consultation paper has proposed both quantitative and risk-based criteria to determine which undertakings and groups should consider macroprudential elements in their ORSA and in how they apply the PPP.

EIOPA estimated that the quantitative criterion foresees a threshold of €12bn in total assets, which aligns with the criteria used in identifying undertakings for financial stability reporting.

“Further qualitative criteria are proposed to allow enough leeway for supervisory judgement and to incorporate risk-based considerations into the selection process,” the association said.

“These criteria are expected to be used by national supervisors to remove or add reinsurers to the list of undertakings that need to perform macroprudential analyses.”

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