The Commission is currently developing the level 2 implementing measures that will elaborate the principles that have been set out in the Solvency II Framework Directive. The Solvency II Framework Directive was subject to a thorough impact assessment (level 1 Impact Assessment). The Commission's proposal for level 2 implementing measures will be accompanied by a full Impact Assessment. However, this impact assessment will not reconsider the level 1 Impact Assessment. Instead, the level 2 impact assessment will be used to inform the policy decisions on the technical detail that will be introduced at level 2. The policy options will be assessed against operational objectives that are similar to those used to assess the policy options at level 1 in order to determine which is the most effective and efficient means by which the stated objectives can be achieved.
The majority of the consultation paper contains a discussion of each of the policy issues identified. The list of policy issues and options has been developed by the Commission Services and the Committee of European Insurance and Occupational Pension Supervisors (CEIOPS) and agreed with Member States at the level of the European Insurance and Pensions Committee (EIOPC). The Commission asked CEIOPS3 in March 2009 to include, as part of its final technical advice on the level 2 implementing measures (CEIOPS' final advice), an analysis and comparison of the policy options in respect of the 17 policy issues identified. This consultation paper summarises the CEIOPS analysis and preferred policy option.
The Commission commissioned Deloitte to undertake an external independent impact assessment study (Deloitte's report). This contains a multi-dimensional analysis of policy issues 1 to 6 and a stand-alone analysis of policy issues 7 to 11. Policy issues 11 to 17 were scoped out of Deloitte's work. The Commission Services currently intends to publish Deloitte's report as an annex to the Impact Assessment report that will accompany the Commission's proposal for level 2 implementing measures in June 2011. A summary of Deloitte's analysis and conclusions with respect to each policy issue has been included in this consultation paper. Deloitte's analysis was largely based on the QIS4 approach and 2007 year-end data. Consequently some of the conclusions may no longer be valid due to changes in economic conditions. Stakeholders are invited to provide views on the impact that changing economic conditions may have had on the conclusions drawn by Deloitte.
The Commission recently asked CEIOPS to run the fifth Quantitative Impact Study (QIS5). The results from QIS5 will provide valuable input to help refine the calibration of the Solvency Capital Requirement standard formula, as well as the requirements for valuation, including technical provisions, and own funds in the level 2 implementing measures. The Commission Services are keen to avoid an overlap between QIS5 and this consultation paper. As such stakeholders are primarily asked to provide views on the wider market impacts that the decisions at level 2 may have. Views of a more qualitative nature should, however, be supported where appropriate with empirical evidence. Stakeholders are also invited to provide quantitative data where this was not submitted as part of QIS5.
Deadline for comments is 26 January 2010.
© European Commission
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article