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CEIOPS published the report on its third quantitative impact study. The report’s 16 pages executive summary indicates the overall impact on the degree of capitalization of the industry as well as a number of areas where guidance will be helpful before embarking on QIS4.
On the financial impact the QIS3 report states among others that there is no significant overall change in terms of neither composition nor size of the balance sheet when comparing Solvency I with Solvency II at an European level, however there may be national variations.
As for the MCR, the vast majority of firms (98%) would not need to raise additional capital to meet it. Also, the regime does not require extra capital in the European insurance market as a whole. However, there will be a redistribution process as a consequence of introducing a risk oriented system where capital requirements will be in line with the risks assumed by the undertaking and the way in which they are managed and controlled.