EIOPA recommends improvements in the supervision of the ‘Prudent Person Principle’ following peer review

The European Insurance and Occupational Pensions Authority (EIOPA) published today the results of its Peer Review on the supervision of the Prudent Person Principle (PPP) under Solvency II. The review focused primarily on the supervision of investments in non-traditional and complex assets, including derivatives, and the use of such assets in unit-linked and index-linked contracts – where market risk is typically borne by the policyholder.