EC asks for help with QIS5

The European Commission has launched its fifth Quantitative Impact Study (QIS5) run by the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) from August to November 2010 and has called on firms to take part.

The Solvency II Directive, adopted by the European Parliament and the Council in 2009 and to be implemented by 1 January 2013, has set the framework for the next generation of supervisory rules for insurance and reinsurance companies in the EU.

Barnier storming

Internal Market and Services Commissioner Michel Barnier said: "This additional quantitative impact study for Solvency II will allow us to get the details of the Solvency II implementing measures and the exact calibration of those measures right.

“The results of the study will help the Commission to take a final decision on the amount of capital that insurance and reinsurance companies will be required to hold under the new solvency regime.

“We need reliable, extensive and representative data from the market in order to make the right decisions. I therefore strongly encourage the insurance industry to participate in this exercise."

Small and specialist firms

The Commission said: “The results from the fifth QIS will provide valuable input to help refine the calibration of the Solvency Capital Requirement standard formula, as well as the requirements for technical provisions and own funds in the level 2 implementing measures.

“This means that the final requirements that will be introduced may be different from the approach tested in this exercise. The results from QIS5 will be discussed in detail with the Member States, as well as with other stakeholders.”

The Commission said it was “particularly important that smaller insurance companies, as well as insurance providers specialised in specific business lines participate in the exercise”.