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.