The European Insurance and Occupational Pensions Authority (EIOPA) published today two Final Reports on the revision of the EIOPA Guidelines on Contract Boundaries and Guidelines on the Valuation of Technical Provisions.
EIOPA has identified several divergent practices regarding the valuation of technical provisions since 2019 and indicated the corresponding need to analyse and further improve the consistency in their calculation.
In a first step, EIOPA proposed some amendments to the Solvency II framework in its Opinion to the European Commission on the 2020 review of Solvency II (December 2020).
EIOPA has subsequently revised its Guidelines on Contract Boundaries and Guidelines on the Valuation of Technical Provisions to provide additional guidance by issuing new guidelines and amending some current guidelines on a limited number of topics considered crucial from a supervisory convergence perspective. These include Modelling Biometric Factors, the Apportionment of Expenses, Changes in Expenses, Assumptions used to calculate Expected Profits in Future Premiums and the Unbundling of contracts.
The new and amended guidelines will be applicable from 1 January 2023, unless otherwise decided by National Competent Authorities (NCAs), which, in line with Article 16 of EIOPA Regulation, shall make every effort to comply with the new/amended guidelines.
The published material includes:
- The Final Report on the revision of the EIOPA Guidelines on Contract Boundaries
- The Final report on the revision of the EIOPA Guidelines on the Valuation of Technical Provisions
- The Resolution of Comments from the Public Consultation of the two set of Guidelines
In the weeks to come, EIOPA will publish translations of the two sets of Guidelines in all EU languages. As soon as they are made available, the comply-or-explain procedure by NCAs shall start.
EIOPA will also publish a revised version of the two “Final Reports” of 2014, where the consolidated guidelines will be available, accompanied by the consolidated explanatory text. This publication will be in English language only.
- Publication date
- 21 April 2022