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Brussels, 1 September 2014
Statement by the European Commission, the European Insurance and Occupational Pensions Authority and the Romanian Financial Supervision Authority on the independent assessment of the Romanian insurance sector
The European Commission (EC), the European Insurance and Occupational Pensions Authority (EIOPA) and the Romanian Financial Supervision Authority (ASF) agreed on the key elements for an assessment by independent third parties of the Romanian insurance sector. This assessment, which will include a balance sheet review and an individual stress test, constitutes a major step for strengthening the viability of and confidence in this sector.
The exercise follows the joint mission of the International Monetary Fund (IMF) and the EC in Bucharest in June (see MEMO/14/420), which was held within the context of the third review under the IMF Stand-By Arrangement (SBA) and the first review of Romania’s precautionary balance of payments programme with the European Union.
An assessment of the assets and liabilities of the insurance undertakings, including the level of technical provisions, governance issues and an individual stress test are part of the exercise. The insurance undertakings participating in the independent assessment will ensure a representativeness of at least 80% of the Romanian market.
The resilience of the insurance sector will be tested using the standards set out in the 'Solvency II' legislation, providing an insightful exercise for both undertakings and the supervisor in preparation for the implementation of this legislation from 1 January 2016.
Independent third parties will carry out the exercise, which will be coordinated and supervised by a Steering Committee. This independent assessment is scheduled to be completed by 30 June 2015.