- This measure will improve the protection of the rights of policyholders, participants and beneficiaries and will help the responsible contribution of the insurance sector to the financial system
- The supervisory priorities are framed in the supervisory convergence plan issued by the European Insurance and Occupational Pensions Authority (EIOPA)
The General Directorate of Insurance and Pension Funds (DGSFP) has published the supervisory priorities for the period 2020-2022. Dissemination for the first time in its entirety of the action plan will increase the transparency of public action in this area and will facilitate the planning of their activities for insurance companies and pension fund management entities.
The supervisory priorities established by the D.G. The main purposes of Insurance and Pension Funds are the protection of the rights of policyholders, participants and beneficiaries and the responsible contribution of the sector to the financial system.
The supervision program is based on the supervisory convergence plan issued by the European Insurance and Retirement Pensions Authority (EIOPA) and includes the specific priorities of the Spanish market.
The DGSFP has established 11 areas that reflect the general supervisory priorities between the fourth quarter of 2020 and the third quarter of 2022. Additionally, other specific actions have been incorporated to analyze the situation arising from COVID19, the monitoring of which has so far confirmed the general position of solvency and adequate capitalization of the insurance sector.
Among the measures included is the strengthening of the supervision of insurance companies that present unfavorable situations; monitoring the estimates of liquidity needs and their evolution; monitoring the policies for the distribution of dividends and variable remuneration; the analysis of the evolution of the redemption of life insurance and of the rights consolidated in pension plans in the new approved exceptional cases and the strengthening, in the case of pension funds, of the monitoring and control of some variables related to investment and return on investments.
Regarding the general supervisory actions for ¿para? The insurance companies and their groups will analyze the following aspects:
- Methodology used by entities to assess technical provisions, both from an accounting and solvency perspective
- Quality of stress scenarios considered by insurance companies in their risk and solvency self-assessment process
- Treatment of groups of insurance companies as a supervisory unit
- Supervision of the international activity of insurance companies and their groups
- Supervisory actions in the field of financial conglomerates in collaboration with bank supervisors
- Control of cyber risk or cyber risk in insurance companies and pension fund managers
- Quality of the data used and reported by the entities
- Questions about specific branches
- Transparency before the supervisor and the market
- Governance system evaluation
- Market behavior.