Risk-based supervision
Risk-based supervision: Guided by the European Insurance and Occupational Pensions
Authority (EIOPA) and BaFin, German insurance companies have participated on a voluntary
basis in multiple quantitative impact studies 33 in preparation for the implementation of
Solvency II.
BaFin has used the results of these studies to monitor the progress of insurers in
meeting the financial requirements of Solvency II. In addition, BaFin has allocated
considerable resources to the pre-application process for the use of internal models under
Solvency II. Following the recently published EIOPA Preparatory Guidelines, 34 BaFin
expects to continue focusing its attention and resources on preparations for Solvency II,
including the implementation of the insurers’ Forward Looking Assessment of Own Risks
and the enhancement of scenario analysis and stress testing practices.
In 2013, BaFin began its “Strengthening prospective supervision” initiative, with the aim of
refining its supervision of insurers, including completing improvements to IT software to
support the revised risk assessment/classification approach. This initiative is still underway,
but the first set of results was received at the end of 2013.
EU Forecast
euf:ba.18.j:85/nws-01