The MFSA has issued Insurance Rule 31 of 2013 which entered into force on 1 January, 2014. The scope of this new rule is to implement the four sets of guidelines published by EIOPA for the preparatory phase of the Solvency II regime.
Insurance Rule 31 of 2013 applies to (re)insurance undertakings whose head office is in Malta and which are authorised to carry on business in terms of the Insurance Business Act. These (re)insurance undertakings are required to adhere to:
1. The Guidelines on System of Governance;
2. The Guidelines on Forward Looking Assessment of Own Risks (based on the ORSA Principles);
3. The Guidelines on Submission of Information to National Competent Authorities; and
4. The Guidelines on Pre Application of Internal Models.
These guidelines are applicable from 1 January 2014 to 31 December 2015 during which the undertakings concerned are expected to illustrate that they are taking active steps towards adopting the relevant aspects of the Solvency II regulatory framework.
The Solvency II Directive is subject to a final approval by the Council of the EU and a plenary vote by the European Parliament, currently expected to be held in February 2014, before it can be implemented into European legislation. The expected timeline is for the Solvency II Directive to be fully operational from 1 January, 2016.