CEIOPS seeks to limit use of add-ons

In light of industry concerns that new rules on capital add-ons could give regulators too much power, especially when it comes to the assessment of additional risks under Pillar II, the Committee of European Insurance and Occupational Pensions (CEIOPS) has issued a consultation document as a first step towards establishing a clear set of guidelines for when it is acceptable to use add-ons.

Pillar II capital add-ons can be thought of as a safety net, which is applied to areas where a risk or

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