FI’s supervision adopts a forward-looking approach and applies a risk-based methodology.
A central tenet in FI's supervision is to ensure that undertakings and groups have control over their operations (for example applicable risks and regulatory requirements) and that they comply with their internal policy documents and decision-making processes (which in turn should maintain a satisfactory level of quality). This requires flexible supervision that focuses on analysing and ensuring the effective management of risks and the fulfilment of requirements on solvency capital.
This forward-looking and risk-based method is based on a risk and impact categorisation that FI conducts once a year. FI then uses the results of the categorisation to prepare supervisory plans specifying the planned supervisory activities for the coming year.
A supervisory plan may cover a single firm, a single group or a larger number of undertakings or groups. The supervisory plans are updated regularly based on risks and priorities, and FI takes necessary measures depending on what the supervisory activities uncover. Supervisory activities and supervisory measures may take place at any time during the year if and when FI considers there to be a need.
FI implemented the supervisory review process in 2015 as part of the preparations for the EU Directive, Solvency II and assesses the process regularly. On 1 January 2016, Solvency II was implemented into Swedish law through amendments to the Insurance Business Act and new and amended regulations from FI.