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A presentation was held by the CEA and the CRO-Forum for solutions to major issues in Solvency II. The presentation emphasized the importance of basing the Pillar I Solvency Capital Requirements on a “total balance sheet” approach. They underlined that there should be no prudential margin on top of the market value of liabilities to cover the risk that the actual values over time vary from the current market value estimates.
The presentation supported the concept of the “cost of capital approach” for the assessment of the risk margin to be added to the best estimate of technical provisions.
The ERRP presented some key issues concerning the implementation of the IORP Directive. The EFRP underlined CEIOPS’ key role in smoothing the path to a true and trustworthy EU passport for IORPs, expounding on the problem of the potential dilemma of harmonization as against mutual recognition in creating a level playing field.
In view of cross-border business the importance of a single licence and the concept of a “one-stop-shop” were underlined.
CEIOPS said that there were still diverse opinions on the issue of a “one-stop shop”, but an agreement was expected to be reached soon.
The Draft CEIOPS’ Work Plan 2006 was presented in order to obtain comments and proposals. On the request of industry representatives CEIOPS will publish an assessment of the results of the first QIS round before launching QIS2.
CEIOPS will not issue further advice regarding the Insurance Groups Directive in 2006. However CEIOPS was willing to look at the extent to which it would be possible to improve supervisory practices short-term within the existing legislative framework.
The next Consultative Panel will be on 11 May 2006 in Frankfurt am Main.
Draft Conclusions
Joint Presentation of CEA / CRO-Forum
Presentation of Mr. Maassen, Chairman of EFRP