Pillar 2 of Solvency II sets out the qualitative requirements that insurers must meet at both individual and group level.
Aiming to safeguard adequate risk management and governance, the Pillar 2 provisions are related mainly to the system of governance, including the own risk and solvency assessment (ORSA). The requirements are closely aligned with the provisions of the Financial Supervision Act (Wft) governing sound and ethical operational management. They cover insurers’ organisations and their operational management in general, the expertise and trustworthiness of their directors and key officers, their risk management, internal control, key functions and outsourcing. ORSA forms part of the risk management system and focusses on insurers’ own assessment of the risks they run and their associated capital needs.
On 27 September 2013 the European Insurance and Occupational Pensions Authority (EIOPA) adopted and issued Preparatory Guidelines for Solvency II, including Guidelines on the System of Governance and ORSA. DNB applies these Guidelines in its supervision of insurers in preparation for Solvency II.
Dutch mortgage funds received €2 billion in new investments from institutional investors such as pension funds and insurers in the first three quarters of 2024, DNB figures show. This is less than in previous years and can be attributed to market interest rates having risen sharply during 2022.
Read more Investor interest in Dutch mortgage funds continues to decline
On Tuesday 5th November from 3:00-4:45 PM CET DNB will organize a physical information session about fit and proper assessments.
Read more Information session about fit and proper assessments DNB
Embedded finance offers customers the convenience of in-app payment options and on-the-spot insurance. This seamless integration of financial services, available exactly when and where they are needed, makes life simpler. But this innovation also entails new risks.
Read more Embedded finance: striking a balance between convenience and risk in the digital economy
Liability-Driven Investment funds (LDI funds) mainly invest in long-term government bonds and long-term interest rate derivatives. The use of these interest rate derivatives exposes LDI funds to liquidity risks in case of large interest rate fluctuations.
Read more Limited liquidity risks in Euro LDI funds
