CEIOPS is consulting on its draft advice to the Commission on certain aspects of Level 2 measures to implement Solvency II. It has published a suite of papers that cover:  

  • actuarial and statistical methods for calculating the “best estimate”;  
  • the way lines of insurance and reinsurance business should be divided for calculating technical provisions;  
  • treatment and calculation of counterparty default risk;  
  • supervisory approval of ancillary own funds;  
  • treatment of future premiums in calculating technical provisions;  
  • financial mitigation techniques;  
  • assumptions about future management action within institutions;  
  • systems of governance within insurance and reinsurance undertakings;  
  • transparency and accountability;  
  • valuation of assets and “other liabilities”;  
  • regulatory requirements for SPVs; and  
  • approval of internal models.  

Each paper has its own consultation period, with most consultations being open until early June. The consultation on segmentation of business lines closes on 3 May.