Solvency II—Pillar 3 Supervisory Reporting and Public Disclosure Requirements
Produced in partnership with a member of a leading accounting firm
Solvency II—Pillar 3 Supervisory Reporting and Public Disclosure Requirements

The following Financial Services guidance note Produced in partnership with a member of a leading accounting firm provides comprehensive and up to date legal information covering:

  • Solvency II—Pillar 3 Supervisory Reporting and Public Disclosure Requirements
  • Solvency and financial condition report
  • Regular supervisory report
  • Quantitative Reporting Templates
  • Key challenges for insurance companies
  • Further references

The requirements of the Solvency II framework (Solvency II) are set out in principle in Directive 2009/138/EC (SII Directive), as amended by Directive 2014/51/EU (Omnibus II) and Regulation 2015/35 (SII Regulation) and refers to measures which form part of a comprehensive harmonisation of the capital adequacy regime for (re)insurance firms in the EU. Solvency II is part of a group of measures aimed at increasing consumer protection (in this case for insurance policyholders) and stability within financial markets. For the first time, Solvency II introduces economic risk-based solvency requirements across all EU Member States. Rather than a 'one size fits it all', each insurer’s individual risk profile shall determine its specific capital requirements. Furthermore, it puts a greater focus on the risk management and sets stricter rules with regard to the public disclosure of information. Solvency II came into force on 1 January 2016 (please see Practice Note: Solvency II—essentials for further information).Directive 2009/138/ECDirective 2014/51/EURegulation (EU) 2015/35

European Insurance and Occupational Pensions Authority (EIOPA) uses the concept of pillars to group the strands of measures within Solvency II. Please note that this is not a concept used in the Solvency II Directive itself (see Practice Note: Solvency II—essentials for further information):

  1. Pillar 1—harmonised valuation and risk-based capital requirements: firms should have adequate risk-based capital. Asset and liability valuations should be prudent and market consistent. For more information about Pillar 1 requirements, see Practice Notes: Solvency II—Pillar 1 capital requirements: valuation, classification and eligibility and Solvency II—Pillar 1 capital requirements: required amounts.

  2. Pillar 2—harmonised governance and risk management requirements: higher standards of risk management and