Q&A LEI code mean for Solvency II insurers

Q&A

Question:

What does the LEI code mean for Solvency II insurers?

Published: 23 December 2022

Answer:

LEI stands for Legal Entity Identifier, a global unique identity code for legal entities. The Financial Stability Board (FSB) developed this global system for identification of legal entities at the G20’s request to improve the transparency of the financial markets. In the Netherlands, the Chamber of Commerce is responsible for issuing LEI codes (see the Chamber of Commerce website for more information).

EIOPA Guidelines on the use of the Legal Entity Identifier (LEI)

EIOPA has issued guidelines on the use of the LEI [1] by Solvency II insurers and institutions for Occupational Retirement Provision (IORPS). In accordance with these guidelines, we expect all Solvency II insurers, groups and IORPs to have applied for an LEI code and apply it consistently in reporting to DNB as part of their sound operational management (Section 3:17 of the Wft and Section 143 of the Pw).

The LEI code is part of the information that is requested in the European harmonised reporting forms. It facilitates the exchange of information between Solvency II insurers and IORPS, national supervisory authorities and EIOPA. The LEI code will also facilitate performing risk analyses on the information submitted; thereby contributing to effective and efficient supervision. The LEI code does not apply for small insurers with a limited risk size coming under the Solvency II Basic regime.

[1]  EIOPA Guidelines on the use of the Legal Entity Identifier (EIOPA-BoS-2021/456)