On 2 July 2009, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) released their second set of advice on Solvency II Level 2 implementing measures. The first set of advice was released on 26 March 2009 (available by clicking here) and the third and final set of advice is expected in November 2009. CEIOPS have called for comments on the consultation papers from stakeholders which they will then consider before finalising the papers and submitting them to the European Commission.
The second set of advice was developed on the basis of the Solvency II Level 1 text adopted by the European Parliament on 22 April 2009. The advice considers the key aspects regarding the future implementation of the Solvency II framework and each issue is presented in a separate consultation paper.
CEIOPS identified a number of issues on which they were particularly keen to receive comments, specifically, the choice of discount rates (CP40, including the impact assessment on the risk-free rate), the assessment of the excess of assets over liabilities (CP46), and, in relation to capital add-ons (CP57), the appropriateness of listing the quantifiable risks not covered by the SCR standard formula that can be subject to a capital add-on, and the proposal to base the analysis of the significant deviation only on risks that are underestimated in the SCR, while allowing undertakings to present evidence that an overall approach could be followed.