CEIOPS looks at Solvency II developments

The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) held its Members’ Meeting, where it addressed the development of Solvency II and approved its final “Answers to the European Commission’s third wave of Calls for Advice in the Framework of the Solvency II project”.

The advice covers features of the future prudential regime for insurance and reinsurance undertakings, including eligible elements to cover the capital requirements, co-operation between supervisory authorities, supervisory reporting and public disclosure, pro-cyclicality and small undertakings.

CEIOPS also approved its final ‘Recommendation on Independence and Accountability’. The advice is being submitted to the European Commission on CEIOPS’ own initiative together with its response to the third wave of calls for advice and concerns the independence and accountability of supervisory authorities generally and the supervisory review process specifically.
CEIOPS further approved its advice on the ‘Prudential treatment of ‘deeply subordinated debt’. The advice follows a request from the European Insurance and Occupational Pensions Committee (EIOPC) for CEIOPS to consider a proposal on possible changes to its advice under the current insurance directives.

CEIOPS then approved its final specification for the second round of its ‘Quantitative Impact Study’ in the context of the Solvency II project. The draft specification had been the subject of earlier comments by CEIOPS members and of a recent ‘pre-test’, the results of which led to their finalisation. The specification, together with the related documentation, will be published at the due time for the commencement of the exercise. Issues discussed by CEIOPS in addition to Solvency II included agreement of its ‘Protocol Relating to the Cooperation of the Competent Authorities of the Member States of the European Union in Particular Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on Insurance Mediation’ (the Luxembourg Protocol). The Protocol provides for supervisory co-operation between competent authorities under the Insurance Mediation Directive.

Updated reports will be on the CEIOPS website shortly.

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