CEIOPS anticipates Solvency II difficulties

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The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has said it will struggle to meet the EU Commission’s demands for a factual report on the third quantitative impact study (QIS3) and a draft of the fourth study (QIS4) by the end of the year.

In a reply to the Commission’s call for a factual report on QIS3 by mid-November and complete draft of QIS4 by December 20, CEIOPS’ chair Thomas Steffen said: “The expected deliveries, both in their scope and timing, are particularly challenging. I would like to mention that the consequent workload will characterise CEIOPS’ work plan and priorities in the coming months and years, naturally limiting the scope for additional activities on Level 3 and making our work for developing new tools in the area of supervisory measures more difficult.”

Steffen added that CEIOPS would need support to deal with the politics surrounding Solvency II: “We are aware of the contentiousness of a number of aspects under discussion on the political level. That is why close co-operation and constructiveness from all stakeholders, including a regular update from the Commission on the progress of the negotiations and some political direction and articulation on pending issues will be essential to achieving our objectives.”

The Commission’s requests came earlier this month. Jörgen Holmquist, the Commission’s director general, also asked CEIOPS to advise on the application of the precautionary principle and on practical measures to ensure effective supervision by May 2008, and on 11 areas labelled ‘priority issues’ by October 2009.