1 April 2020
Client Alert | France | Insurance, Industrial Risk & Transport
Aware of the impact of the Coronavirus health crisis on insurance actors, the EIOPA has quickly reacted by publishing recommendations addressed to the national supervisory authorities.
In consideration of the need for (re)insurers to “concentrate their efforts on monitoring and assessing the impact of the Coronavirus/COVID-19 situation as well as ensuring business continuity", the EIOPA has called upon the national supervisory authorities to be more flexible with (re)insurers regarding their reporting obligations.
In order to foster convergence and consistent supervisory approaches across Member States, the EIOPA has indicated the additional delays that could be granted to (re)insurers in order to meet their "European" reporting obligations (i.e the reporting obligations that apply to all European (re)insurers under the provisions of the Solvency II Directive).
The ACPR has been quick in reacting and announced in a press release dated March 25 its compliance with the EIOPA's recommendations with regards to the additional delays temporarily granted to (re)insurers to meet prudential reporting and public disclosure requirements.
The ACPR not only granted an extension of the delay for "European" prudential reporting, but also indicated that (re)insurers will also be granted longer delays to meet additional national requirements, as well as to file their reports on unclaimed funds and unpaid fees.
To this end, the ACPR has published a table accessible on its website that specifies, for "European" reporting requirements as well as additional national reporting requirements, the additional delays available to insurance or reinsurance companies.
In particular, we learn that:
Nevertheless, the ACPR indicates that, in accordance with the EIOPA's recommendations, (re)insurers will only be given an additional two weeks to publish on the internet information relating to their balance sheet, the impact of the long-term guarantee and transitional measures, own funds and SCR calculation;
In addition to the information on additional delays, the ACPR has clarified that insurance and reinsurance organizations will be encouraged and given the option to submit their entire collections at any time prior to the additional delay and within the usual deadlines.
On the matter of the "other non-prudential reporting", the ACPR has indicated that the submission of reports on unclaimed funds and unpaid fees was deferred to 30 June 2020 and that the deadline for collecting data for the Holistic Impact Assessment for the 2020 Solvency II Review was extended to 1 June 2020.
Finally, while exceptionally allowing time to (re)insurers to meet their reporting obligations, the ACPR has pointed out in a press release published on the same day that it was ensuring the continuity of its missions during the lockdown period. It thus indicates that financial institutions and insurance organisations may continue to submit applications to the Authorisations Division of the ACPR (approval, authorisation, notification, declaration) and that every ACPR team remain fully mobilised in order "to carry out their mission of supervising the activities of institutions in order to preserve financial stability and ensure the fight against money laundering and terrorist financing".
 EIOPA communication of 17 March 2020 "EIOPA statement on actions to mitigate the impact of Coronavirus/COVID-19 on the EU insurance sector"
EIOPA Recommendation of 20 March 2020 "Recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure - Coronavirus/Covid-19"
 ACPR Press Release of 25 March 2020 "The French Prudential Control Authority announces flexibility regarding the deadline of reporting of the insurance sector"
 "Table of extension of delays for national and complementary requirements" published on the ACPR website on March 26 2020
 ACPR Communication of 25 March 2020 "Temporary flexibility on the dates for submission of European prudential reporting statements, additional national requirements and public disclosure - Background to Coronavirus/Covid 19".
 ACPR press release of 25 March 2020 "The Prudential Control and Resolution Authority ensures the continuity of its missions during the lockdown period ".
This legal update is not intended to be and should not be construed as providing legal advice. The addressee is solely liable for any use of the information contained herein and the Law Firm shall not be held responsible for any damages, direct, indirect or otherwise, arising from the use of the information by the addressee.
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