EIOPA addresses supervisory convergence from different perspectives depending on the issue and risks at stake. In order to support supervisory convergence and to protect policyholders EIOPA reviews existing practices, both from NCAs and from the market.
EIOPA issues thematic reviews on a regular basis. These reviews aim to assess a current or emerging risk and find out what is happening in a specific market. By investigating specific key issues with relevant products and activities in detail, thematic reviews provide guidance and evidence for reasoned policy proposals and consistent supervisory practices.
Thematic reviews have an embedded EU-wide focus. They are intended to be used to investigate issues that go beyond one national market, either because the issues have been identified in several national markets or because they have a cross-border element to them. This facilitates building a coordinated understanding across the markets where issues have been identified and, furthermore, an assessment and “early warning” of the potential for these issues to develop in other Member States.
EIOPA organises and conducts peer reviews on activities of NCAs in order to further strengthen consistency in supervisory assessments and outcomes. The reviews are based on the methodology developed by EIOPA and allow for objective assessment and comparison across the authorities reviewed. On the basis of a peer review, the Authority may issue guidelines and recommendations to NCAs. The outcome of peer reviews shall also be taken into account when developing draft regulatory technical or implementing technical standards. The best practices and outcome of peer reviews with the agreement of the NCAs that have been subject to the review are to be made public. Through peer reviews, an open dialogue among NCAs is encouraged, enabling them to jointly explore supervisory practices and fostering collective and collaborative solutions in dealing with supervisory issues.
Internal Model Comparative Studies contribute to EIOPA's objective of supervisory convergence regarding Solvency II internal models. EEA-wide studies are valuable tools complementing individual internal model analysis and studies at national level.
To help detect potential unjustified differences in supervisory practices regarding the approval of internal models, which may threaten the level playing field or policyholder protection, EIOPA participates in selected colleges of supervisors, peer reviews and visits to national supervisory authorities, and assesses information from market participants. . EIOPA has also issued supervisory opinions related to internal models.
Market and Credit Risk Modelling