Internal model pre-applications in 2014


A survey conducted by Solvency II Wire reveals that approximately 175 insurance and reinsurance entities are currently in pre-application for a Solvency II internal model or a partial internal model.

The survey, which covers 25 Member States across Europe, reveals that there are 19 Member States with entities in pre-application in 2014.

21 National Competent Authorities (NCAs) responded to the survey and information for 4 others was provided by industry sources.

Information on Bulgaria, Spain and Romania was not available.

The UK has by far the most entities in pre-application, approximately 45, according to a number of sources close to the PRA.

5 Member States have between 10-20 entities in pre-application. These include 18 in Ireland, 15 in Demark, 12 in Poland and 11 in Sweden.

In France, the ACPR confirmed that there are between 7-20 entities in pre-application.

A further 8 Member States have less than 10 entities in pre-application, including 7 in Italy, 5 in Belgium and the Netherlands and 4 in Slovakia. In addition, NCAs in the Czech Republic, Finland and Hungary confirmed that they have entities in pre-application but would not disclose the number.

161 of the estimated 175 applications were confirmed either directly by the NCAs or in their official communication to industry. All entities are currently in pre-application.

Formal applications will begin after 1 April 2015 when parts the Solvency II Directive are transposed into national law.

Solvency II Wire will publish further details and analysis in 2015.