- Opening date
The aim of the supervisory statement is to ensure that a high-quality and convergent supervision is applied to run-off undertakings or portfolios that are subject to Solvency II regulation.
Acquisition of run-off portfolios and run-off undertakings by other insurance undertakings is increasing and is attracting interest from specialised investment entities such as private equity. EIOPA believes that it is essential to specify supervisory expectations to better consider and deal with potential risks stemming from run-off business models. The supervision of run-off undertakings is particularly challenging because of the specific risk profile of such undertakings e.g. in relation to the changes in ownership. In addition, there is a lack of specific regulation for run-off undertakings in the Solvency II framework.
The supervisory statement is part of EIOPA’s priority work defined in the Supervisory Convergence Plan 2020 and 2021.
EIOPA invites all interested stakeholders to provide comments to the supervisory statement by responding to the survey by 17 October 2021.