Following areas for improvement in insurance supervision
The FSAP highlighted the following areas for improvement in insurance supervision:
• Further development of a risk-based supervisory approach, including the expansion of
group-wide supervision an supervision of re-insurers’ investments (Insurance Core
Principles (ICPs) 4, 17 and 22);
• Development of stress-testing capacity and analysis of longer-term effects (ICP 11);
• Increase in the frequency and number of on-site inspections (ICP 13);
• Increase in the number of staff with actuarial expertise and related quantitative skills
(ICP 20); and
• Enhancement of reporting requirements for (re-)insurers as well as the shortening the
time lags in the publication of aggregate insurance data (ICPs 12 and 26).
An important driver for change has been the Solvency II Directive. Solvency II aims to
harmonise EU regulations for insurance companies and introduce a more risk-based and
forward-looking approach to supervision. Although the application date of Solvency II has
been postponed to 1 January 2016, preparations for its introduction by many EU member
states, including Germany, began some years ago.