Today, the European Insurance and Occupational Pensions Authority (EIOPA) has published an Opinion on the supervision of remuneration principles in the insurance and reinsurance sector.
The Opinion addresses how to ensure consistent practices in the application of the remuneration principles included in Solvency II.
While the Solvency II framework provides for provisions of remuneration for sound and prudent management, the remuneration principles defined in the Delegated Regulation are high-level and leave considerable discretion to undertakings and supervisory authorities.
This Opinion gives guidance to national supervisory authorities on how to challenge the application of certain principles.
To promote a proportionate approach, the Opinion focuses on those staff identified as potential higher profile risk-takers. In this way, EIOPA aims to avoid creating further administrative burden.
The Opinion supports the convergence of national supervisory practices and contribute to a smooth functioning of the internal market, in line with EIOPA’s tasks to ensure an effective and consistent level of supervision in order to guarantee a similar level of protection for policyholders and beneficiaries at EU level.