Regulatory Alerts2023-04-11 | NBB_2023_03Added · Updated
Circular NBB_2023_03 on 'run-off' and risk mitigation
The National Bank of Belgium establishes expectations for Belgian insurance and reinsurance entities, including branches of non-EEA insurers and group entities, regarding the 'run-off' business model and risk mitigation strategies. The circular mandates immediate notification to the regulator upon the decision to cease writing new significant business, requiring detailed financial forecasts, governance changes, and ad hoc ORSA assessments. It further specifies technical provisioning hypotheses, investment governance under the 'prudent person' principle, and rigorous risk analysis for re concentration and counterparty default in run-off portfolios.