On 16 April 2010, the European Commission (the “Commission”) published its consultation on draft technical specifications for the Fifth Quantitative Impact Study and a draft call for advice from the Committee of European Insurance and Occupational Pensions Supervisors (“CEIOPS”).

The Commission states in the draft technical specifications that most of the market participants and supervisory authorities expressed their support for the methodologies and for the general approach proposed in the Fourth Quantitative Impact Study, namely that Solvency II should be based on an economic valuation of assets and liabilities. There was apparently broad support for the general design and the methodologies of the proposed approach. Based on the findings of the Fourth Quantitative Impact Study, the Commission states that there is a need for a consistent development of the Solvency II valuation approach aligned as far as possible with international accounting developments (IFRS). This papers sets out to do just that.

The call for advice requests CEIOPS to run a Fifth Quantitative Impact Study between August and November 2010 and to publish a report on the results of that exercise in April 2011 in the frame of the development of level 2 implementing measures for the Solvency II Directive.