Following agreement on the Solvency II Directive framework (see our blog here), a recent CEIOPS Members Meeting held on 25/26 March 2009 has identified the importance of the implementation of the Solvency II regime. Working groups set up by CEIOPS have also analysed the implications of the current adverse market conditions and have targeted a number of areas where Solvency II could be further refined to cope with a severe economic downturn.
CEIOPS have identified a refinement at module and sub-module levels in Levels 2 and 3 of Solvency II whilst also highlighting the importance of stregthening governance, risk management, and internal controls in the insurance sector. Of particular importance to the insurance sector, CEIOPS has found that the regulatory and supervisory oversight needs to focus more on insurers' exposures to special purpose vehicles, credit default swaps and the procyclicality of regulatory regimes.
CEIOPS continues to work with other Level 3 Committees on the fallout from the current economic crisis and is following up on a number of projects with the Financial Stability Forum, G20 recommendations, and various EU Economic and Financial Committee Working Groups.
For a link to the full press release please click here.