Circular no. 2/2025: Rules no. 1556/2024 on templates for data submission by insurance companies and insurance groups and Rules no. 1557/2024 on procedures, presentation and templates for the report of insurance companies and insurance groups on solvency and financial position

7 January 2025
Ref.: 2401157 / 2401158

Circular no.: 2/2025
To insurance companies, insurance groups and the Association of Companies in Financial Services.

Subject: Rules no. 1556/2024 on templates for data submission by insurance companies and insurance groups and Rules no. 1557/2024 on procedures, presentation and templates for the report of insurance companies and insurance groups on solvency and financial position.

The Central Bank of Iceland has adopted two sets of rules to transpose into Icelandic law the sub-delegated acts of Directive 2009/138 (Solvency II). On the one hand, this concerns Rules no. 1556/2024 on templates for data submission by insurance companies and insurance groups. By these Rules, Commission Implementing Regulation (EU) 2023/894 of 4 April 2023 laying down implementing technical standards for the application of Directive 2009/138/EC of the European Parliament and of the Council as regards the templates for the submission of information to the supervisory authorities by insurance and reinsurance undertakings, necessary for their supervision, is transposed into Icelandic law.

The Implementing Regulation replaces the earlier Implementing Regulation, no. 2015/2450, on the same subject. The new Implementing Regulation is based on experience from the application of the Directive and developments in financial markets during this period. Among the main changes are:

1. Templates have been updated with the aim of making them both more comprehensive and more user-friendly.

2. Further data are requested where applicable, e.g. a new template is introduced for cyber underwriting risk.

3. The Regulation takes into account the updating of the latest standards and best practices.

4. Ambiguity and inconsistency in the earlier Regulation have been remedied.

On the other hand, the Central Bank has adopted Rules no. 1557/2024 on procedures, presentation and templates for the report of insurance companies and insurance groups on solvency and financial position. By these Rules, Commission Implementing Regulation (EU) 2023/895 of 4 April 2023 laying down implementing technical standards for the application of Directive 2009/138/EC of the European Parliament and of the Council as regards the procedures, presentation and templates for the disclosure of information by insurance and reinsurance undertakings on their solvency and financial condition report is transposed into Icelandic law.

The Implementing Regulation replaces the earlier Implementing Regulation, no. 2015/2452, on the same subject. The new Implementing Regulation takes into account experience and changes that have occurred in financial markets since the earlier Regulation entered into force. Among the main changes are:

1. Templates have been updated to increase the quality, comparability and readability of this information.

2. Data submissions have been designed so that they are proportionally not too burdensome without compromising the quality of the data that insurance companies and insurance groups disclose.

3. Changes that have been made to data submissions to supervisory authorities, e.g. regarding cross-border activity, are reflected in the aforementioned templates.

4. Increased requirements are imposed on insurance companies that use full internal models or partial models in assessing the solvency requirement to disclose diversification effects between risk factors.

Both of the aforementioned Rules were adopted on the basis of specified provisions in Act no. 100/2016 on insurance activity and Act no. 60/2017 on insurance groups. The Rules were published in the Law Gazette on 19 December last. They entered into force upon publication and at the same time the Central Bank of Iceland's Rules no. 1114/2021 and 1115/2021 were repealed.

If questions arise concerning this circular, they can be sent to the email address: sedlabanki@sedlabanki.is.

Yours faithfully,
CENTRAL BANK OF ICELAND

Gísli Sigurbjörn Óttarsson
Director
Prudential Supervision

Sigurður Freyr Jónatansson
Specialist
Prudential Supervision