The European Insurance and Occupational Pensions Authority (EIOPA) is seeking feedback on its guide to preparations for the Solvency II reforms.

The guidelines will eventually be issued to national competent authorities (NCAs), outlining how they should apply the new regulations to insurers.

EIOPA has called for a “consistent and convergent approach” to implementing the changes.

“The present European Union supervisory regime is not sufficiently risk-sensitive and is to be replaced by Solvency II,” the guide says.

“It is in the best interests of policyholders, insurers and supervisors to build on the steps taken already to prepare.

“Without such preparation, there is a risk that momentum is lost and the benefits of the financial and human resources already devoted to the Solvency II project are dissipated.”

EIOPA wants joint, consistent preparation at a pan-European level, rather than each national regulator working separately.

The latter approach “will increase the difficulty and reduce the benefits from the introduction of the harmonised approach reflected in Solvency II”, the authority says. 

EIOPA accepts NCAs may not have the legal power to enact its guidelines, but it hopes they will incorporate them into regulatory frameworks.

The guide focuses on a system of governance, assessment of insurers’ risks, submission of information to NCAs and pre-approval of internal modelling.

The consultation period lasts until June 19. EIOPA intends to publish the final guide a few months later.