Ulrich Zink, assistant director, Solvency II, at the ABI in London, said that previous qualitative impact studies had been overshadowed by quantitative data gathering, such as that conducted by the European Insurance and Occupational Pensions Authority (EIOPA).
"We are keen to do an impact assessment but we would prefer to do something that is more industry-led, as opposed to a Quantitative Impact Study exercise [as conducted by Eiopa]. At this stage there needs to be more focus on the qualitative implications of the new framework", Zink told Life & Pension Risk.
The study will examine the potentially undesirable outcomes of Solvency II, Zink said. "We would be quite keen to demonstrate to the regulator what the impact of implementing Solvency II is going to be. We still believe that several aspects of Solvency II are unsatisfactory – particularly regarding products offering long-term guarantees. We are concerned by the impact on consumers, as well as changes in the rules with regard to asset allocation and the potential macroeconomic impact", said Zink.
The timeframe for the study has yet to be decided, although an initial work plan could be agreed within weeks. The focus of the study will be on UK insurers, although Zink said incorporating data from more than one European country would be preferable. "If you want some weight in Europe you need to have something that incorporates more than one country. So, ideally, we would like to have it as a joint exercise across markets. But for now, it would be an ABI process for the UK market."
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