EIOPA analyses the use of limitations and exemptions from reporting under Solvency II

The European Insurance and Occupational Pensions Authority (EIOPA) published today its annual report on the use of limitations and exemptions from the regular Solvency II reporting by national competent authorities (NCAs) during 2020 and the first quarter of 2021.

During 2020, three NCAs granted limitations and exemptions from reporting to 113 solo undertakings, while during the first quarter of 2021 there were 11 NCAs which granted limitations to 669 solo undertakings.

At group level, two NCAs granted limitations and exemptions from annual reporting to seven groups during 2020 and two NCAs granted exemptions to 27 groups for the quarterly reporting for the first quarter 2021.

In the first quarter 2021, large undertakings completed around 10 templates while on average five were submitted by smaller ones. Furthermore, regarding annual reporting the ten largest undertakings by total assets completed on average almost 37 templates, while the ten smallest undertakings completed only 28 templates.

The results show that proportionality is implemented in the reporting and reflects the nature, scale and complexity of the risks inherent to the business. The average number of templates submitted by small, medium-sized or large insurance undertakings varies substantially, which reflects that the proportionality embedded in the design of reporting requirements delivers a good result.

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Background

The report is based on the Solvency II annual and quarterly quantitative reporting templates with reference during 2020 and the first quarter of 2021, as submitted to EIOPA by solo undertakings or insurance groups from the European Economic Area.

The limitation to regular supervisory reporting can be granted only to undertakings that don’t represent more than 20% of a Member State's life, non-life insurance and reinsurance market respectively. Supervisory authorities shall give priority to the smallest undertakings when determining the eligibility of the undertakings for those limitations. For solo undertakings limitations can be authorised to submit quarterly reporting information of reduced scope, where this information is reported at least annually; while  undertakings may be exempted from both quarterly and annual reporting in case of reporting templates on an item-by-item basis.