EIOPA issues captive supervision Opinion

The European Insurance and Occupational Pensions Authority (EIOPA) has published an Opinion regarding the supervision of captive re/insurance undertakings, with a particular focus on intra-group transactions, the prudent person principle and governance.

According to EIOPA the Opinion is addressed to competent authorities and outlines the supervisory expectations while taking into account the specificities of captive re/insurers’ business models.

EIOPA stated: “The Opinion aims at facilitating 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. The Opinion 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.”

The Opinion seeks to ensure a high-quality and convergent supervision of captive re/insurance undertakings.

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