CEIOPS Letter on Solvency II and QIS 3

19 March 2007

In a letter to the European Commission announced that it has defined the content of its technical specifications for its third quantitative impact study. For example, CEIOPS decided not to include in the Pillar I requirements the so called “size-factor” for the calculation of the non life underwriting risk module and to delete any adjustment for expected profit and loss for no life business.

However, there are serious doubts expressed in the last plenary meeting that considered alternative approaches for the calculation of the market risk module would still be in line the overall ruin probability of 0.5% over a one-year time horizon, a key aspect of the Commission’s framework for consultation on the whole project.

Letter

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