EIOPA publishes Second European Insurance Stress Tests Results
European insurers were given a clean bill of health following European-wide stress tests carried out by EIOPA.
The stress tests show the effect of the new Solvency II rules on the capital of insurance undertakings in various scenarios.
Of note, 10% of insurance undertakings and groups surveyed showed a breach of their Minimum Capital Requirements ('MCR') in the adverse scenario while 8% of undertakings breach their MCR in an inflation scenario.
Following recent international developments, EIOPA decided to include a sovereign debt exposure scenario in a separate test. The results of the test show that 5% of the undertakings would be unable to satisfy MCR requirements should adverse conditions in the sovereign debt market occur.
On 5th May 2011 the European Commission published the Summary of Responses to the Consultation on the Level 2 Implementing Measures for Solvency II
The scope of the consultation was to obtain input on the impact of the implementing measures on insurance markets, insurance products and consumers and on the wider social or economic environment. The responses show that stakeholders' concerns relate to a small number of key issues, namely the impact on long-term products, volatility and pro-cyclicality, proportionality and limiting the reporting burden and the need for transitional measures in certain areas. The Commission Services have set up working parties to develop solutions to several of these issues. The responses together with the results of the fifth quantitative impact study (QIS5) will serve as input when preparing the impact assessment, which will accompany the Commission's proposal for the level 2 implementing measures.
The summary can be found at:
http://ec.europa.eu/internal_market/consultations/2010/solvency-2_en.htm
Captive Report on QIS5 issued by the European Captive Insurance and Reinsurance Owners` Association (ECIROA)
The ECIROA has released the results on its study on QIS 5 results in relation to Captives. Among the countries involved in the report are Malta, Luxembourg, Ireland and Gibraltar. The report includes data on the distribution of the Solvency Capital Requirement (SCR) coverage by country.
The presentation on the report may be found at:
http://www.eciroa.org/wp/wp-content/uploads/2008/09/ECIROA-QIS5.pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
