Contents: Level 2 implementation, reporting & stress testing , market survey
Markets and reporting key concerns for Level 2
The effect on markets and the reporting burden on insurers are among the main concerns expressed by respondents to the European Commission’s consultation on the Level 2 implementing measures for Solvency II. A summary of the responses was published on 5 May 2011 by the European Commission. [caption id="attachment_960" align="alignright" width="302"]
- Impact on long-term products
- Volatility and pro-cyclicality
- Proportionality and reporting requirements
- Transitional measures
Stress tests to evaluate reporting under Solvency II
The current stress tests for European insurers will evaluate reporting capability under Solvency II, not capital adequacy. RiskNet reports that according to Gabriel Bernardino, chair of EIOPA, these tests will evaluate how insurers will cope with the five reports they will have to produce each year. Solvency II will require firms to produce four quarterly reports and an annual report. “Both in the Solvency II directive and in the EIOPA regulations there is the need to perform stress tests as part of the supervisory regime. So what we are doing by stress-testing insurance for the first time is testing how to implement a programme of stress tests on top of the Solvency II framework,” Mr Bernardino said. The European Central Bank and European Systemic Risk Board are working with EIOPA in the design of the stress tests. Results of the current test will be published in July.Is the industry ready to meet the Solvency II deadline?
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