The European Commission has sent a Call for Advice along with final technical specifications asking CEIOPS to run the fifth quantitative impact study on Solvency II (QIS5). European insurance and reinsurance undertakings are being asked to participate in QIS5 from August to November 2010. CEIOPS will publish the report on the results of the exercise in April 2011.
Consultation on a draft version of the QIS5 technical specifications was carried out between 15 April and 20 May 2010. This consultation included several meetings with industry stakeholders, CEIOPS representatives and Member States. QIS5 was also discussed at the public hearing on Solvency II on 4 May. The EC says many of the comments received have been taken on board in updating the QIS5 technical specifications, resulting in a number of changes.
Commenting on the launch of QIS 5, Kerrie Kelly, director general of the Association of British Insurers, said: ‘We agree on the need to test capital requirements for Solvency II, but the ABI has already made it clear that the Directive should not be used to force insurers to hold excessive capital, as this would ultimately lead to higher costs and less choice for customers.
‘Imposing retrospective rules on products, such as annuities, would also lead to higher costs for consumers. The Directive must therefore have appropriate transitional arrangements,’ said Kelly.
‘We will continue to engage with European officials as the Directive is finalised and to encourage our members to take part in the study.’