Michel Barnier introduction date for the new directive put back from October 2012 to 31 December 2012
Thursday, 6 May 2010 | 
Finance - Banki...
MICHAEL BARRIER: EU Internal Market Commissioner
SOLVENCY 2
Speaking on Tuesday 4 May in BXL at a hearing on the EU's Solvability II Directive (2009/138/EC) revising the surveillance system for insurance and re-insurance (see EUROPE 9887), EU Internal Market Commissioner Michel Barnier said that very few insurers' tax years end on 31 October and he therefore wants the introduction date for the new directive to be put back from 31 October 2012 to 31 December 2012 in order to bring it into line with the end of most insurance companies' tax years (31 December). The review of the Solvability II Directive will be part of the draft "Omnibus II" legislation expected to be unveiled in June 2010 to amend several pieces of financial services legislation to incorporate changes set out in the EU financial supervision package.
OMNIBUS 2
Barnier discussed the sensitive issue of balance in the new measures to ensure that insurance companies' capital requirements match the level of risk. After the summer break, the Commission will publish implementation measures to this end. Barnier said the rules had not yet been decided upon but people tell him the current system is imbalanced and the capital requirements are too great. He said the new rules should strike a balance between stronger solidity on the one hand and international competitiveness on the other. He urged insurance companies to take an active part in the consultation exercise on the fifth impact assessment (QIS 5) from August to November 2010.
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Comments
On Active Markets & Solvency II
This is nothing short of a brilliant analysis piece by John Hibbert of Barrie & Hibbert (Edinburgh). Its applied in the Solvency II context but it is equally applicable in Banking in that intersection between Basel II/III and IFRS7/9 (which we bang on about here!). I thoroughly recommend this page if your are struggling with these issues of valuation.
On Active Markets & the Solvency II 'DLT' definition
More about Solvency II
Click on this link!
QIS5 Technical Specifications - Annex to Call for Advice CEIOPS
Final QIS5 Technical Specifications - Nice work for actuarial trainees over summer :)
http://ec.europa.eu/internal_market/insurance/docs/solvency/qis5/201007/technical_specifications_en.pdf
Solvency II Conceptual Data Model
This diagram is key to S2 on the business side, it is also a development artefact
Address to Insurance Institute of Ireland by Matthew Elderfield,
Address to Insurance Institute of Ireland by Matthew Elderfield, Head of Financial Regulation, Central Bank of Ireland
worth a read here
Solvency II FSA ISG papers
UK FSA Insurance Standing Group Minutes
ISG papers
Why excessive capital requirements harm Solvency 2
In response to the Barnier speech, Speaking on behalf of the European Insurance and Re-insurance Federation (CEA), Michaela Koller warns in a press release against setting capital requirements too high, arguing that the economic crisis must not be used to justify setting excessive capital requirements on an industry that did not cause the crisis and which has survived it rather well. The CEA is concerned about the coverage of risk in healthcare and non-life insurance, investing in shares and insurance companies investing in banks, and how liquidity premiums and the interchangeability of capital will be covered when calculating a company's solvability.
The CEA has produced an interesting contribution to the debate
Why excessive capital requirements harmconsumers, insurers and the economy
Impact of Solvency II on the companies’ balance sheet
I came across this impact analysis recently which I thought was most interesting
Modelling for Solvency II - Useful Links from CEIOPS
CEIOPS' Advice on the procedure to be followed for the approval of an internal model http://www.ceiops.eu/media/files/consultations/consultationpapers/CP37/CEIOPS-L2-Final-Advice-Procedure-approval-internal-model.pdf
CEIOPS' Advice on Tests and Standards http://www.ceiops.eu/media/files/consultations/consultationpapers/CP56/CEIOPS-L2-Advice-on-Tests-and-Standards-internal-model-approval.pdf
CEIOPS' Advice on Partial Internal models: http://www.ceiops.eu/media/files/consultations/consultationpapers/CP65/CEIOPS-L2-Advice-Partial-Internal-Models.pdf
CEIOP'S Consultation Paper 80: L3 Guidance on pre-application: http://www.ceiops.eu/index.php?option=content&task=view&id=702
CEIOPS' Stock-take Report on the use of internal models in insurance: http://www.ceiops.eu/media/files/publications/reports/Stock-taking-report-on-the-use-of-Internal-Models-in-Insurance.pdf
CEIOPS' Paper on Lessons learnt from the crisis: http://www.ceiops.eu/media/files/publications/reports/CEIOPS-SEC-107-08-Lessons-learned-from-the-crisis-SII-and-beyond.pdf
Risk Aggregation in Solvency II
A technical reference from my Analytic Bridge blog
http://www.analyticbridge.com/profiles/blogs/risk-aggregation-in-solvency
“death by 1,000 spreadsheets”
Insurers face "death by 1,000 spreadsheets" under Solvency II
RISK DOT NET