EIOPA publish Pillar 3 report ahead of Omnibus II agreement
By George Crooks, Domain Expert, Wolters Kluwer Financial Services' FRSGlobal
The European Insurance and Occupational Pensions Authority (EIOPA) published the final report on the Pillar 3 reporting and disclosures on the 10th July 2012, despite having still to reach an agreement on Omnibus II (OMD II) issues. The regulatory body took a bold step to publish the Pillar 3 report now, so that the industry will start taking the drastic steps needed to develop the reporting templates if they are to meet the implementation date of 1st January 2014.
The European regulators, whilst telling insurers to get their house in order quietly, acknowledge that the trilogue negotiations between the European Commission, the Council and Parliament on issues such as equivalence, matching adjustments, counter-cyclical premiums, transitional provisions and extrapolation of the risk-free yield curve are still to be resolved. Nevertheless, EIOPA have urged insurers to proceed speedily with the development of the Quantitative Reporting Templates (QRT) and Disclosure requirements.
The regulators have informed that firms should not be complacent and assume that these are the final amendments to the QRT’s and have given a clear warning that IT costs may increase depending on the outcome of the talks and voting planned to take place on 22nd October 2012. (more...)