Detailed Provisions

Irish Financial Regulator Requirements

The Financial Regulator has written to insurance firms in August 2009 reminding them of the impact Solvency II will have on their businesses.

Although the framework directive is not expected to be formally published in the EU Official Journal until October 2009, and the directive will not take effect until October 2012, the Financial Regulator is keen that firms should commence planning for the implementation process now. The Financial Regulator has set out four key elements to successful implementation:

An appropriate governance framework be in place.
An accountable individual appointed at executive level with responsibility for overseeing implementation of Solvency II (The Financial Regulator advises that a specific board member should assume responsibility for Solvency II issues).
Performance of a gap analysis to identify any shortfalls relative to the Solvency II requirements.
Implementation plans should focus on all three pillars (capital requirements, supervisory activities and public disclosures) rather than focusing on potential capital releases under Pillar 1.

Finally, the Financial Regulator requires firms to inform it by end-August 2009 of the person responsible for Solvency II at the insurer and whether the insurer intends to utilise internal models.

Click here to download the letter.

Level 1 Framework Directive

The definitive version of the Solvency II Framework Directive (2009/138/EC) was published in the Official Journal on 17 December 2009.

Click here to download the Directive.

Level 2 Implementing Directives

Following the agreement on the Level 1 Framework Directive, the EU Commission wrote to CEIOPS in June 2009 setting out the timetable for the development of Level 2 Implementing Directives, the subject matters to be dealt with by the Level 2 Implementing Directives and details of Quantitative Impact Study 5.

The Commission wishes to have received final advice from CEIOPS on the Level 2 implementing measures by 31 January 2010, recognising that it may be necessary to launch a third round of public consultations on the implementing measures in October 2009.

Click here for the June 2009 letter from the EU Commission to CEIOPS.
Click here for the list of Level 2 implementing measures.
Click here for the revised EU timetable for the introduction of Level 2 implementing measures.

Quantitative Impact Studies

QIS stands for 'quantitative impact study'. These are simulations, performed by insurers on a voluntary basis, of the impact of proposed new requirements on their financial resources. These have been run by CEIOPS, on the request of the Commission.

The results of QIS 4 were made public in November 2008. A further QIS 5 will be conducted between August and mid-November 2010. The QIS are the primary means for testing the design of the future European Standard Formula, as well as the main route for finding the correct calibration. The QIS are also instrumental in collecting data on the potential impact of the new formulas for SCR and MCR.

Click here to download QIS 4 report.
Click here to download QIS 3 report.

Additional documents relating to the Quantitative Impact Studies are available on the CEIOPS QIS Homepage.