03 March 2006

CEIOPS fifth progress report on Solvency II

CEIOPS has published the Fifth Progress Report to the European Commission on its work in the field of the Solvency II project. 2006 should see the developing definition of the Framework Directive. The proposal for such a Directive is planned for mid-2007. CEIOPS will publish further consultation papers focussing on those parts of its advice to the Commission which were not fully elaborated and/or defined and thus require additional inputs from interested parties.

Among others, the consultation papers will cover key Pillar I issues such as the valuation of technical provisions, development of the SCR and the MCR formula and the recognition of reinsurance and other risk mitigation techniques. The paper is scheduled for October 2006 because it mainly depends on the results of QIS2.

Consultation papers on group aspects as well as Pillar II aspects on the treatment of reinsurance within the Solvency II framework, fit and proper requirements and supervisory powers are envisaged to be approved for public consultation in June 2006. The final advice is expected in October 2006.

An additional consultation paper on Pillar II add-on and safety measures is planned to be approved for public consultation in October 2006.

CEIOPS will also progress the preparatory work for delivering answers to expected requests for advice on potential implementation measures. Indeed, the European Commission is planning the preparation of implementation measures in parallel to that of the Framework Directive.

CEIOPS is currently preparing a more comprehensive, second round of QIS (QIS2), including solvency requirements in close cooperation with European stakeholders. QIS2 is expected to start in May 2006. The results of QIS2 are planned to be sent to the European Commission in October 2006.

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