Solvency II Update presentation given at the Deloitte Insurance Seminar by Mr Joe Perdoni, Head of Prudential Supervision.

This Update provides a reminder of the various communications from the GFSC and EIOPA over recent months. These are in addition to the many meetings we have held with individual firms, insurance managers and industry over this period to ensure that a constructive two-way dialogue continues. The GFSC continues to seek to take a proportionate approach where applicable.

Seamus Creedon's contribution to the Solvency II for NEDs Webinar held by the Gibraltar Financial Services Commission on May 28, 2015

Presentation run during the webinar.

As part of the GFSC’s ongoing assessment of insurers’ preparations for Solvency II a number of self-assessments were requested in quarter 3 of 2014. This paper looks at each pillar of Solvency II in turn, as well as a section on firms’ implementation plans. At the outset of each section we provide a reminder of the GFSC’s expectations of firms.

The content of this paper is important. Firms should make their respective Boards of Directors aware of it.

Solvency II - Presentation by Mr Ken Hogg – Solvency II Project Manager, Gibraltar Financial Services Commission

Technology Update presentation by Mr John Pashley - Technical Consultant and Mr Ken Hogg – Solvency II Project Manager.

This update sets out how firms can submit their data in XBRL.

The GFSC has published its latest update in relation to Solvency II.
The document should be read by Directors and managers of Gibraltar insurers applicants to be Gibraltar insurers that will be carrying on insurance in Gibraltar from 1 January 2016 and that will fall to be regulated under the requirements of the Directive.

A key aspect of the GFSC’s approach is to monitor firms’ progress with their implementation plans. To that end, the GFSC has issued a data request and requested that firms complete and submit further self-assessments. These relate to all 3 pillars of Solvency II. Directors should ensure that they are aware of the GFSC’s expectations and requirements.

The GFSC is working closely with all regulated firms to ensure that the Gibraltar market is fully prepared for the introduction of the Solvency II regulatory regime on 1 January 2016.

As part of this process, firms were requested to assess their current state of readiness against the governance guidelines outlined in the Insurance Guidance Note 14, and their preparations to submit a “Forward looking assessment of own risks” by the end of 2014.

Supporting documentation was requested for selected areas and the information supplied has now been reviewed by the GFSC and forms the basis of this feedback paper.

The content of this paper is important. Firms should make their respective Boards of Directors aware of it.

These slides, from a speech at a conference hosted by Mazars, summarise the September 2014 Update on Solvency II.

The GFSC has published its latest update in relation to Solvency II.

The purpose of the document is to ensure that Gibraltar insurers are aware of the key communications that will take place between the GFSC and firms as both parties ensure that they are prepared to operate in accordance with Solvency II Directive requirements from 1 January 2016.

The document should be read by Directors and managers of Gibraltar insurers applicants to be Gibraltar insurers that will be carrying on insurance in Gibraltar from 1 January 2016 and that will fall to be regulated under the requirements of the Directive.

The readers should ensure that they are aware of GFSC expectations and that Directors and Managers are governing the firms in a manner that those expectations will be met.

On 31 December 2013 the GFSC published Insurance Guidance Note No. 14 in which it set out its expectations in respect of the transition to Governance Requirements established under the Solvency II Directive.

The GFSC wrote to the insurers falling within the 50% / 80% threshold on 12 December 2013, requiring that they submit the information set out in the EIOPA Guidelines in respect of Submission of Information to National Competent Authorities. The letter also required that insurers confirm their intention to build appropriate systems and structures to deliver high quality information for supervisory purposes, tailored to fit the organisational structure and risk management system and that take into consideration the nature, scale and complexity of the inherent risks.

A key part of our work plan will relate to the Pillar 3 reporting requirements. As part of our work on the Fourth Capital Requirements Directive, we concluded that a strategic technology refresh will enable the GFSC to be more efficient in the use of personnel resources, and better prepared for the challenges of further EU initiatives. One of the key objectives of our programme will be to introduce a more integrated system across the GFSC that will benefit all parties that are required to communicate and exchange information with us. It will also support the GFSC in its analysis of information that it receives and enable it to forward relevant information to European Supervisory Authorities in an efficient manner. A project team is already in place and will be engaging with the industry when key milestones requiring industry input are reached.

The GFSC wrote to insurers on 15 November 2013 advising them whether they met the threshold conditions set out in the guidelines, based on whether they fell within 50% / 80% of market share as defined in the Guidelines. The GFSC also required that insurers confirm their intention to actively prepare and begin the implementation of the FLAOR, and to develop processes with appropriate and adequate techniques, tailored to fit the organisational structure and risk management system and that take into consideration the nature, scale and complexity of the inherent risks, with assessments starting from 2014.

On the 31 of May 2013, the GFSC sent a 'Dear CEO' letter to Gibraltar insurers setting out the areas on which it intended to focus its supervision of the insurance sector. These were on strengthening firms systems and controls in relation to capital adequacy, technical provisions, risk management and corporate governance. The GFSC recognises that many aspects of the new supervisory framework will be challenging, but we believe that implementation of Solvency II is strongly aligned with these areas of focus.