Answers to the European Commission on the ... - Eiopa - Europa

• protect policyholders’ and beneficiaries’ interests;
• moni<strong>to</strong>r <strong>the</strong> solvency of insurance undertakings; and
• enforce <strong>European</strong> and national specific regulations.
14.18 The powers are <strong>the</strong> <strong>to</strong>ols of <strong>the</strong> supervisory authority <strong>to</strong> implement <strong>the</strong>
Supervisory Review Process as an on-going process, i.e. it includes <strong>the</strong>
powers in implementing it and <strong>the</strong> measures that can be taken as a
result of it. As outlined in <strong>the</strong> answer <strong>to</strong> CfA 2 supervision should
include both quantitative and qualitative elements, and should be
conducted both off-site and on-site as appropriate.
14.19 Consequently <strong>the</strong> supervisory authorities should have <strong>the</strong> power <strong>to</strong> do
both full-scale and focused on-site inspections.
14.20 Member States should not be forced <strong>to</strong> abolish existing additional
powers, if this compromises <strong>the</strong> attainment of <strong>the</strong>ir national
supervisory objectives.
14.21 CEIOPS regards <strong>the</strong> following aspects as necessary for a common set
of supervisory powers:
Ga<strong>the</strong>ring information
14.22 Supervisory authorities must have direct access <strong>to</strong> any information
available <strong>to</strong> <strong>the</strong> insurer about its own position.
14.23 Supervisory authorities should have <strong>the</strong> power <strong>to</strong> request that
undertakings collect any and all appropriate information, in particular
regarding <strong>the</strong> risks that are not fully covered by Pillar I requirements.
Information on <strong>the</strong> system of governance, internal control and risk
management policies, strategies and processes should be made
available <strong>to</strong> <strong>the</strong> supervisory authority.
14.24 In order <strong>to</strong> better assess and control <strong>the</strong> situation in an insurance
undertaking, <strong>the</strong> supervisor should be able <strong>to</strong> intensify supervisory
activity and <strong>to</strong> give detailed guidance; <strong>to</strong> require an undertaking <strong>to</strong>
appoint an independent party acceptable <strong>to</strong> <strong>the</strong> supervisor <strong>to</strong> provide a
report prescribed by <strong>the</strong> supervisor; <strong>to</strong> require <strong>the</strong> undertaking <strong>to</strong>
extend <strong>the</strong> scope of internal or external audi<strong>to</strong>rs’ or consultants’ work
(at company’s cost), and for <strong>the</strong> professionals engaged <strong>to</strong> be required
<strong>to</strong> report directly <strong>to</strong> <strong>the</strong> supervisory authority. Fur<strong>the</strong>r activities can
include requesting additional stress testing and scenario analysis,
providing recommendations <strong>to</strong> actuaries <strong>to</strong> review actuarial
assumptions according <strong>to</strong> <strong>the</strong> circumstances, commissioning
independent actuarial reviews, and applying prudential limits and
restrictions more rigorously.
14.25 Fur<strong>the</strong>rmore, supervisors should have access <strong>to</strong> additional information
concerning <strong>the</strong> solo undertaking from <strong>the</strong> parent undertaking of a
group, or from o<strong>the</strong>r group entities. CEIOPS has fur<strong>the</strong>r elaborated on
<strong>the</strong> supervision of groups and on <strong>the</strong> Supervisory Review Process for
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