The European Insurance and Occupational Pensions Authority (EIOPA) issued a recommendation to Bulgaria’s Financial Supervision Commission (FSC), calling on it to review and strengthen its supervisory processes for assessing insurers’ and reinsurers’ solvency positions. The recommendation follows EIOPA’s concerns that the FSC’s review of a Bulgarian reinsurance undertaking’s solvency simulation was too superficial and did not reflect the due diligence expected when verifying a supervised entity’s solvency, proportionate to the nature, scale and complexity of the situation. EIOPA urged the FSC to revise its supervisory review process for verifying undertakings’ and groups’ solvency positions so that, under a prospective and risk-based approach proportionate to the nature, scale and complexity of the undertaking, supervised entities are compliant on a continuous basis with regulatory solvency requirements. The FSC has two months from the issuance of the recommendation to confirm to EIOPA whether it complies or intends to comply.
European Insurance and Occupational Pensions Authority 2025-01-13
European Insurance and Occupational Pensions Authority issues recommendation urging Bulgaria’s Financial Supervision Commission to strengthen solvency assessment supervision
EIOPA recommended Bulgaria’s FSC enhance its supervisory processes for assessing insurers’ and reinsurers’ solvency positions. This follows concerns over the FSC's inadequate review of a Bulgarian reinsurance undertaking's solvency simulation. EIOPA emphasized a prospective, risk-based approach to ensure continuous compliance with regulatory solvency requirements.