The Solvency II Experts News

On 2 July 2009, the Committee of European Insurance and Occupational Supervisors (CEIOPS) published for consultation their second set of advice to the European Commission on various Level 2 implementi...

As negotiations continue in Europe on the precise form that Solvency II will take, insurers are preparing for its implementation. Lloyd’s is working with the LMA to ensure that the market will be read...

Standard formula or own model? Companies should not just wait to receive guidelines.

Today, CEIOPS is releasing for consultation its second set of advice developed on the basis of the Solvency II Level 1 text adopted by the European Parliament on 22 April 2009. The consultation papers provide advice on key aspects for the future implementation of the Solvency II framework. The issues are interlinked although they are presented in separate papers.

CEIOPS would like to highlight, inter alia, some areas in its consultation papers, on which comments and concrete input and proposals from stakeholders are especially welcomed. For example, 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.

click here to see a high level summary of papers and here to download these papers and their responses.