CEA calls on industry to participate in QIS 5

The CEA has urged insurers “both large and small” to take part in the European Commission’s fifth Solvency II quantitative impact study.

The European insurance and reinsurance federation has claimed that mass participation in the study would ensure greater clarity of the final Solvency II proposals.

CEA president Tommy Persson said: "The insurance industry has always supported the Solvency II project, which introduces a robust, economic risk-based prudential regime for insurance.

"QIS 5 is a unique opportunity for insurers to contribute to the finalisation of Solvency II, since its results will provide crucial information for Solvency II's ultimate design and calibration, even though some elements may require further adjustments."

The CEA had previously voiced serious concerns over the advice for implementing measures drawn up by the Committee of European Insurance and Occupational Pensions Supervisors, which it felt was excessively prudent in relation to capital requirements and did not always respect the basic principles of an economic risk-based regulatory regime, as set out in the Solvency II Framework Directive.

Mr Persson added: "The CEA made contributions in order to create implementing measures that are more in line with economic reality and better reflect the Level 1 Directive text. Although many of the issues raised by the CEA have been addressed in the QIS 5 specifications, there remain areas of significant concern.

"We believe that the QIS 5 specifications prepared by the European Commission represent a step in the right direction compared to the Ceiops advice.

"At the same time we urge the European Commission and the other EU institutions to consider the outstanding industry concerns in order to draw up a balanced regime that ensures consumer protection, promotes financial stability and, at the same time, provides the insurance industry with the necessary conditions to continue to effectively play its role in the economy."