The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on its opinion regarding the supervision of captive (re)insurance undertakings.
In the publication, the authority has a particular view on intra-group transactions, the prudent person principle and governance.
This draft opinion is addressed to competent authorities and outlines the supervisory expectations while taking into account the specificities of a captive (re)insurer’s business model.
EIOPA aims to facilitate a risk-based and proportionate supervision of captive (re)insurance undertakings and further support the convergence of supervisory expectations in the context of creating a level playing field within the EU.
In its publication, the authority sets out supervisory expectations in several areas, including intra-group transactions (especially cash pooling), the consistent application of the prudent person principle as well as governance-related aspects in connection with key functions and outsourcing requirements.
EIOPA says it seeks to “ensure a high-quality and convergent supervision of captive (re)insurance undertakings.”
This is part of EIOPA’s priorities as defined in the 2022 and 2023 Supervisory Convergence Plans.
Stakeholders are invited to provide their feedback by responding to the questions via the online survey by 5 January 2024.
