With WHO warning that Europe is the new ‘epicentre’ of COVID-19 given its surging number of cases and related deaths, insurers there are likely to face progressively more difficult conditions navigating challenging market conditions and in maintaining operations, according to the European Insurance and Occupational Pensions Authority (EIOPA).

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The independent European Union financial regulatory institution said it is monitoring the COVID-19 situation very closely in close communication and cooperation with the other European supervisory authorities and the European Systemic Risk Board as the outbreak continues to cause disruption to households and businesses.

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Considering that it is particularly important that insurers are able to maintain the services to their clients, EIOPA said insurers should be ready to implement the necessary measures to ensure business continuity. Additionally, the institution called on national competent authorities to be flexible regarding the timing of supervisory reporting and public disclosure regarding end 2019 in order to offer operational relief in reaction to the pandemic. It said it will coordinate the specifics of this approach.

Furthermore, in the short term, EIOPA will limit its requests of information and the consultations to the industry to essential elements needed to assess and monitor the impact of the current situation in the market.

At the same time, EIOPA is extending the deadline of the holistic impact assessment for the ‘2020 Solvency II Review’ by two months to 1 June 2020. In the coming days, it will communicate details on postponing additional reporting and information requirements.

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