Solvency II from consultation to implementation - Ernst & Young - Global

The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) is involving the insurance industry in a multi-year consultation process to test proposed Solvency II regulations. These Quantitative Impact Studies (QIS), performed by companies on a volunteer basis, test the design and calibration of the future European Standard formula.

In the chart below, we break down QIS 3 results and identify what participant feedback is being addressed in QIS 4. Among the key findings:

• QIS 3 measured Solvency II’s financial impact on insurance company balance sheets and found that the overall solvency ratio tended to decrease, in particular for non-life insurance companies.
• QIS 3 also revealed that 98% of firms meet the Minimum Capital Requirement (MCR), while 84% meet the Solvency Capital Requirement (SCR). While a large-scale capital injection appears unlikely, some reallocation of capital may be needed.

Download the full report, "Shifting the focus from consultation to implementation"