EIOPA Publishes Supervisory Statement On Reinsurance From Third-Country Reinsurers

On 4 April 2024, EIOPA published its finalised supervisory statement on the supervision of reinsurance concluded with third-country (re)insurance undertakings (Supervisory Statement).

The Supervisory Statement, accompanied by a useful feedback statement, was the outcome of a consultation process carried out by EIOPA during Q3 2023. Unsurprisingly, although some stakeholder feedback was taken on board by EIOPA, the substance of the Supervisory Statement remains largely unchanged from the consultation version.

The objective of the Supervisory Statement is to raise awareness of the risks stemming from sourcing reinsurance from non-equivalent jurisdictions and to propose a risk-based approach to limit the effect of these risks. While primarily addressed to national competent authorities (NCAs) (e.g. the Central Bank of Ireland), it is clear from the feedback statement from the consultation that certain elements present expectations for (re)insurers to consider. The