The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has published the full report on its fourth Quantative Impact Study (QIS4) on the proposed Solvency II regime (the Report).
One significant objective of QIS4 was to collect information on the impact of the Solvency II proposals on the balance sheet of insurance entities. This would then be used to develop the implementing measures of the proposed directive.
The Report notes the "impressive participation" by insurers and groups in QIS4 and confirms that whilst the vast majority of undertakings (98.8%) would meet the Minimal Capital Requirement, 11% of participants would not meet the Solvency Capital Requirement (SCR). Most affected will be captives, of which over 28% would not meet the SCR.
Overall, the basic architecture to Solvency II was described as sound and well received by the participants.