CEA urges insurance industry to participate in QIS 5
The CEA, the European insurance and reinsurance federation, has urged all European insurers, to take part in the European Commission's fifth quantitative impact study (QIS 5), in order to collect data for the forthcoming Solvency II regulatory regime.
"The insurance industry has always supported the Solvency II project, which introduces a robust, economic risk-based prudential regime for insurance. QIS 5 is a unique opportunity for insurers to contribute to the finalisation of Solvency II, since its results will provide crucial information for Solvency II's ultimate design and calibration, even though some elements may require further adjustments" said Tommy PERSSON, CEA President.
The CEA had previously signaled its concerns over the advice for the implementing measures drawn up by the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops), becauze is seemed excessively prudent in relation to capital requirements and did not always respect the basic principles of an economic risk-based regulatory regime, as set out in the Solvency II Framework Directive.
"The CEA made contributions in order to create implementing measures that are more in line with economic reality and better reflect the Level 1 Directive text," said PERSSON. "Although many of the issues raised by the CEA have been addressed in the QIS 5 specifications, there remain areas of significant concern."
"We believe that the QIS 5 specifications prepared by the European Commission represent a step in the right direction compared to the Ceiops advice. At the same time we urge the European Commission and the other EU institutions to consider the outstanding industry concerns in order to draw up a balanced regime that ensures consumer protection, promotes financial stability and, at the same time, provides the insurance industry with the necessary conditions to continue to effectively play its role in the economy," added PERSSON.
The QIS 5 will take place between August and mid-November 2010, with the results due in April 2011. The CEA is running workshops in a number of EU countries to facilitate companies' participation in the exercise. The first workshop was held in Brussels on 4 August. Further workshops will take place in Vienna on 21 September, Warsaw on 5 October, Tallinn on 7 October and Athens on 12 October.
