Study will be used by European legislators to develop detailed rules for new insurer capital regime.
The deadline for insurers to complete a key study in the development of Solvency II will expire within days.
Single insurers have until 7 July to complete the fourth Quantitative Impact Study (QIS4), while insurance groups have until the end of the month.
The QIS4 study will help policymakers calibrate the capital requirements of the forthcoming Solvency II regime and help insurers prepare for the new rules.
QIS4 is run by the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).
The results of the study, which commenced in April, will feed into the work being done by European legislators to develop the detailed rules for Solvency II.
It also allows insurers across Europe the chance to test the latest capital calculations and determine how well they are working.
Naren Persad, a senior consultant at Tillinghast, part of professional services firm Towers Perrin, urged insurers to participate in the study.
He said: “QIS4 feeds into the negotiations in the European Parliament. It is an opportunity for companies to flag up areas where the capital is too high or too low. They can point out where things are not right.”
He added: “QIS4 will also enable companies to understand the implications of Solvency II.”
Persad said it was not too late for companies to take part in the study.
“For UK companies, the FSA ICAS regime has much in common with the direction of Solvency II and QIS4. Hence there is the possibility of using existing ICA available information to do a ‘quick and dirty’ analysis of the impact of QIS4 over a few days.
“Although not ideal, it at least allows companies to recognise the major issues and highlight the areas where QIS4 is not appropriate.”
Persad said some flexibility in the deadline for completing the study was also likely to ensure maximum participation.
Over 1,000 insurers across Europe participated in the earlier QIS3 study. CEOPS hopes that a larger number will participate in QIS4. There are approximately 5,000 insurers in Europe.
Solvency II aims to create a Europe-wide risk-based insurer solvency regime. It is due to come into effect in 2012.
