The completion of the final Level 2 advice for the implementing measures for Solvency II will be of interest to those tracking the development of the new insurance Directive.
The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has submitted its final advice to the European Commission on the Level 2 implementing measures for Solvency II.
The final advice relates to the calibration of non-life and health underwriting risks as well as the calibration of the Minimum Capital Requirement (MCR). Further data to support the calibration of non-life and health underwriting risks was gathered by CEIOPS following comments from stakeholders that previous data used for the consultations was too limited. Additional data from a wider range of Member States has been used to revise the calibrations.
In order to supplement its advice, CEIOPS will be releasing a calibration paper in time for the European Commission’s consultation on QIS5. Further, CEIOPS will publish a preliminary assessment of the changes included in the final advice (which will form the basis of QIS5) in comparison with the proposals tested in QIS4. Preliminary analysis undertaken by CEIOPS shows that the solvency capital requirements are expected to increase when compared to QIS4. At the same time, the proposed changes in the specifications are likely to lead to a decrease in the required level of technical provisions. However, CEIOPS warns against any pre-emption of the outcome of QIS5.
The technical specifications for QIS5 will be issued for consultation in mid-April.
For further information: CEIOPS deliver final advice on Solvency II Level 2 implementing measures