29 Oct 2008, David Benyon, Operational Risk & Regulation
FRANKFURT – In light of the current economic turmoil, the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops) has reiterated the importance of a having a risk-orientated approach towards Solvency II – the planned European Union capital requirements directive for insurers.
Ceiops has confirmed it, “without considering amendments to the architecture of Solvency II”, will start “reflecting on lessons to be learned for the proposed regime, with a view to any strengthening of the focus on financial stability, and any further convergence as a Level 3 Committee in the Lamfalussy process”.
The degree of future convergence through the Lamfalussy process remains unknown, but Ceiops is keen to stress an increasingly central role for itself in the Solvency II process. Ceiops also underlined the importance of a flexible approach suited to market conditions “in normal as well as in crisis times”.
Ceiops is keen to avoid disturbing the approval process of the Level 1 directive, and duplication of existing work by it and other bodies, so will it centrally co-ordinate its review work and will focus on lessons to be learned and Level 2 implementing measures.