FERMA is urging brokers and insurers to find ways of supporting clients who are struggling to pay premiums on time or in full. “Many businesses are under strain because of the combined pressures of the pandemic and the harder insurance market. This help could make a real difference to them” comments FERMA President Dirk Wegener.
His remarks follow a statement from the Belgian association BELRIM calling on brokers and insurers to respond with flexibility to the current, very difficult situation for many businesses.
Wegener adds that he hopes insurers will respond in the same spirit as the Recommendations from the European Insurance and Occupational Pensions Authority (EIOPA) to allow insurers greater flexibility in their deadlines for supervisory reporting and public disclosure.
The recommendations aim to allow insurers delays in reporting and public disclosure in the following three cases:
- Annual reporting for year-end 31 December 2019
- Quarterly reporting to Q1-2020
- Solvency and Financial Condition Report for year-end 31 December 2019
EIOPA identifies the current situation as a major development and says that insurers need to include appropriate information on the effect of the pandemic in the published reports.
These recommendations are expected to cover all insurers, and FERMA says that for more information risk managers with EU-domiciled captives should contact the national insurance regulator. The national authorities will decide how EIOPA’s recommendations are implemented locally.