EIOPA Statement on Solvency II supervisory reporting in the context of COVID-19
Following EIOPA’s Recommendations of 20 March 2020 on annual and quarterly reporting and publication deadlines, EIOPA considers that insurance and reinsurance undertakings should now be in condition to comply with the deadlines provided in the Solvency II framework.
In the context of the current circumstances, it is of utmost importance to continue to provide a framework for consistent supervisory approaches and ensure that all competent authorities and EIOPA receive timely quarterly information. Therefore, the general objective of this Statement is to foster convergence and consistent supervisory approaches across Member States.
Against this background, insurance and reinsurance undertakings are expected to report in the Solvency II solo quarterly Own Funds template (S.23.01) with a reference date between 30 June and 31 December 2020, a calculation (if it is available as of reference date) or at least an estimation of the Solvency Capital Requirement at the end of each quarter reference date instead of the last calculated one as indicated in the Instructions of the Implementing Technical Standards.
EIOPA also urges competent authorities to submit the information received quarterly to EIOPA no later than 2 weeks upon receipt to allow EIOPA to monitor the situation in a timely manner.
Insurance against pandemic risk: EIOPA identifies options for shared resilience solutions
Today the European Insurance and Occupational Pensions Authority (EIOPA) published its Issues Paper highlighting options for developing shared resilience solutions for pandemic risk. The paper recognises that private insurance solutions alone will not be sufficient to protect society against the financial consequences of future pandemics. Solutions will require both public and private sector involvement, and build on the following four key elements:
Proper risk assessment
Risk prevention and adaptation measures
Appropriate product design
Risk transfer
The options include different insurance models and coverage, for example whether cover should be mandatory, and whether payouts should be based on a pre-agreed parameter or index. The options also include different ways the public and private sectors could work together, for example establishing an EU-expert group for data sharing and risk modelling, and creating a platform for public and private coordination on prevention measures. Different potential roles are considered for how the European Union can contribute towards solutions.
As a next step, the scope of the shared resilience framework could be expanded to consider further resilience gaps stemming from systemic cyber, climate change impacts in natural catastrophes and terrorism.
In developing this paper, EIOPA consulted the insurance and reinsurance industry, as well as commercial insurance buyers and insurance brokers and distributors.
Gabriel Bernardino, Chairman of EIOPA, said: ‘It is of the utmost importance not only to have a debate about how our society can better react to future disruptive events such as Covid19 but also to come up with a way forward. While it is clear that insurance cannot cover the full costs of pandemics, insurers and reinsurers should be part of the solution and not part of the problem. Furthermore, I strongly believe that shared resilience solutions can play an important role in mitigating economic fragmentation throughout the European Union and should be part of the recovery efforts towards a European Union that protects its businesses and its citizens. We invite views on the options raised in the paper’.
The EIB Group is providing this financing as part of its package of emergency measures to support European companies amid the pandemic
Part of the funds are facilitated under the Investment Plan for Europe
The European Investment Bank (EIB) Group and Banco Santander Consumer Portugal (BSCP) are joining forces to support Portuguese small and medium-sized enterprises (SMEs) and mid-caps affected by the COVID-19 crisis. The EU bank and BSCP have signed two agreements to provide EUR 587 million to inject liquidity and finance investments at a critical time.
The two agreements will be implemented via EIB Group participation in BSCP first capital relief securitisation of auto loans, part of which will be dedicated to financing the purchase of less polluting vehicles by SMEs. This is one of the first STS (simple, transparent, standardised) securitisation to have been placed on the Portuguese market since the new EU regulation entered into force last year.
In concrete terms, the EIB will purchase several tranches of the securitization for an amount of EUR 489.4 million from BSCP. In addition, the European Investment Fund (EIF), the EIB Group subsidiary specialising in SMEs financing, will grant a EUR 97.6 million guarantee to BSCP on the retained part of several tranches. Part of this EU bank financing is provided under the Investment Plan for Europe, the support of which enables the EIB Group to expand its lending capacity for investment projects that have a higher risk profile owing to their structure or nature.
With the impact of COVID-19 in Portugal, enabling access to finance for small and medium-sized companies is key to preserve the industries and jobs in the country, where SMEs account for about 77% of total employment. The two agreements signed by the EIB Group and BSCP will make possible to support companies across many sectors of the Portuguese economy.
Both operations are part of the EIB Group’s initiatives launched in March as a rapid response to the crisis caused by the coronavirus pandemic. The EIB Group has also taken extraordinary measures to speed up its processes and make its internal policies more flexible in order to, among other things, deploy its support as quickly as possible and finance expenses that it would not normally cover, such as the operating costs of European businesses. As a matter of fact, Portuguese companies benefiting from this EIB Group fund will be able to finance not only investments but also working capital expenditures.
EIB Vice-President Emma Navarro, responsible for the Bank’s operations in Portugal, said: “The quick mobilisation of financing for SMEs and mid-caps following the deep effects of the COVID-19 crisis is a priority for the EIB. We have adapted our activities to the new situation by implementing targeted measures aimed at alleviating the most urgent needs of European companies. We are delighted to join forces with BSCP to pass our support on to Portuguese companies, fostering at the same time the development of the securitisation market in the country. We will continue working to boost the recovery of the Portuguese economy”.
European Commission Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “With more than three quarters of Portugal’s jobs coming from small and medium-sized companies, it is imperative that we do everything we can to protect those businesses at this difficult time. The European Commission and the European Investment Bank Group are working together to help SMEs weather the storm and recover from the devastating effects of the coronavirus crisis.”
Nuno Zigue, CEO of Banco Santander Consumer Portugal, said: “The Portuguese economic and employment performances will undeniably rely on the recovery of SMEs and mid-caps from the impact produced by the pandemic crisis. In the current extreme circumstances, the access to financing facilities is a key resource for companies. Banco Santander Consumer Portugal is proud to contribute to such efforts, in association with EIB Group. Serving a dual purpose of capital relief and funding, this will be the first Auto Loan ABS transaction of its kind placed in the Portuguese market”.
EIB response to COVID-19
The EIB Group is playing a key role in directly combating COVID-19 by supporting EU efforts to halt the spread of the pandemic, find a cure for the illness and develop a vaccine. To this end, the EU bank is prioritising all investments related to the health sector and research and development programmes focusing on this goal. The EIB’s current project portfolio for supporting both critical healthcare infrastructure and research and development investments in the EU health sector stands at around €6 billion. The EIB and the World Health Organization also recently signed an agreement to drive cooperation between the two institutions and work together to strengthen healthcare systems in the countries most vulnerable to the pandemic.
To combat the economic impact of this crisis and as part of the package of measures the EU is deploying to tackle the economic effects of the pandemic, on 23 April the European Council approved the EIB Group’s creation of a €25 billion pan-European COVID-19 guarantee fund focusing primarily on supporting SMEs across the EU. The fund will make it possible to mobilise up to an estimated €200 billion of additional financing.
In March, the EIB Group announced a package of emergency measures with this objective in mind. Under this initial response package, the EIB is offering an asset-backed securities (ABS) purchase programme to enable banks to pass on the risk of their SME loan portfolios to the EIB, with the aim of mobilising €10 billion. The EU bank is also adapting its existing financing instruments shared with the European Commission to mobilise up to €10 billion in additional financing for European SMEs and mid-caps. For its part, the EIF (the venture capital specialist subsidiary of the EIB Group) is offering specific EU-backed guarantees to financial intermediaries that will help to mobilise up to €8 billion.
More detailed information on the support offered by the EIB and EIF is available on the following website: www.eib.org/covid-19
Banco Santander Consumer Portugal (BSCP) is a leading consumer finance company, operating in auto and consumer goods loans in the country. BSCP is part of Santander Consumer Finance which in turn is part of Santander, one of the largest financial groups in the world.
The Dominican Republic and Saint Kitts and Nevis join TMclass
This question is for testing whether you are a human visitor and to prevent automated spam submission.
What code is in the image?
Your support ID is: 11469114194969408245.
Migration: COVID-19 continues to cause hardship for migrants and deprives children of access to education
Situation at the border
Migrants and asylum seekers continue to face additional obstacles when trying to enter the EU. Ports in many countries remain closed, many restrictions are still in place and some countries require all third-country nationals to self-quarantine or provide a negative COVID-19 test upon arrival – a requirement many people seeking safety in the EU cannot fulfil. The number of allegations of pushbacks at borders, in contravention with the EU Schengen rules, have increased.
A new Hungarian law provides for the immediate removal from the territory of any person who crosses the Hungarian border unlawfully and indicates an intent to seek asylum. Duly mandated international and regional bodies will determine the compatibility of these provisions with the EU Charter of Fundamental Rights, the EU asylum rules and international refugee law.
Asylum procedure and residence permits
Coronavirus measures led to a 90 % decline in asylum applications in April 2020, the lowest rate since 2008. Asylum procedures are gradually resuming in many countries but challenges persist. Access to information remains problematic in many countries.
Several countries (e.g. Croatia, Greece, Italy France, Hungary) allow certain third-country nationals to remain legally in the country until the end of the pandemic.
Some countries (Italy, Poland, Spain) introduce temporary work permits to third-country nationals working in agricultural, care or hospitality sectors.
Situation in reception centres
Restrictions and quarantines in receptions centres are often stricter than coronavirus restrictions for the general population.
Many new arrivals are not registered at all or with a delay. Access to legal help is limited.
In many countries, people who were supposed to leave the reception centres can stay until the pandemic is over. In others, unsuccessful asylum applicants or even recognised refugees have become homeless.
Child protection
Because of the pandemic, many asylum-seeking children cannot access education. Many centres are missing online learning tools or stable WI-FI connection, which children could access.
Detention and return
Authorities in many countries released detainees from pre-removal detention. In addition, most removals are suspended due to the coronavirus travel restrictions.
Background:
The latest migration quarterly bulletin covers the period between 1 April and 30 June 2020. Moreover, the first section of the report covers developments relating to the COVID-19 pandemic.
FRA has been regularly collecting data on migration since September 2015.
