The European Insurance and Occupational Pensions Authority (Eiopa) has asked for feedback from re/insurance stakeholders and market participants on its latest discussion paper on infrastructure investments by insurers.
Eiopa announced the initial plans for the discussion paper in February (see IAR, 5 February, Eiopa reconsiders Solvency II infrastructure investments charge), when it announced that it wanted to analyse infrastructure investments on a more granular level.
The discussion paper has now set out a number of initial ideas, including:
- Definition of infrastructure investments that offer predictable long-term cash-flows and whose risks can be properly identified, managed and monitored by insurers;
- Possible criteria for this new category of infrastructure investments covering issues such as standardisation and transparency;
- Prudentially sound treatment of the identified investments within a risk-based supervisory system, focusing on their specific risk profile; and
- Effectiveness of the current Solvency II risk management requirements in ensuring that the risks of this complex and, for insurers, relatively new asset class, are properly managed.
The consultation paper and the template for comments can be viewed here.
The deadline for responses is 26 April.
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