Insurance Newsletter – Issue No. 10

EIOPA: Supervisory statement on inflation

On 22 December 2022, EIOPA published a supervisory statement (the "Supervisory Statement") addressed to national competent authorities which appertains to the higher rates of inflation throughout 2022 and its impact on insurance and reinsurance undertakings.

The Supervisory Statement sets out EIOPA's supervisory expectations in the following areas:

1. Impact on undertakings' technical provisions

Insurance and reinsurance undertakings are expected to:

• consider inflation depending on the nature, scale and complexity of the risks, so that the level of technical provisions remains appropriate; and
• assess whether their inflation expectations in the technical provisions are still realistic given current market circumstances.