On October 6th, the European Insurance and Occupational Pensions Authority (EIOPA) published an opinion on the supervision of captive reinsurance companies in the public consultation procedure.
The opinion drafted based on Article 29 of EU Regulation No. 1094/2010, that mandates the European Authority to play an active role in establishing a common supervisory culture within the EU, and on the Directive 2009/138/EC (Solvency II Directive) , aims at defining uniform supervisory practices for captive reinsurance companies.
These undertakings exclusively provide coverage for risks associated with the industrial or commercial group to which they belong, hence – as emphasized by EIOPA – it’s necessary to develop approaches that are in line with the principle of proportionality, while also facilitating a high level of risk-based supervision for these companies.
The Authority invited the competent national authorities to submit their comments to the published opinion using the questionnaire published on the website, within January 5, 2024.