Watson Wyatt welcomes CEIOPS advice on Solvency II Level 2 implementing measures UK - March 27, 2009 - Watson Wyatt believes that the first set of advice from the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) on Solvency II Level 2 implementing measures represents a crucial milestone in the development of the Solvency II regime that will define the future regulatory regime for European insurers.
The advice, released yesterday, coincides with a preliminary agreement by the Committee of European Representatives on the contentious issues of group support and equity stress tests. Watson Wyatt believes that this deal should now pave the way for the Solvency II Framework Directive to be formally approved as EU law before the European Parliament breaks for elections this summer.
"The recent modifications to the proposals help bring a much needed flexibility to the supervision of insurance and reinsurance companies and in particular should help reduce the potential negative feedback loop between falling asset prices and capital requirements apparent in recent times," said Mark Chaplin, Global Head of Risk & Value Services at Watson Wyatt. "The proposals offer the opportunity to reconsider the regulation of groups and the controversial group support arrangements three years after the introduction of the new regime."
The Framework Directive is the first of three main levels of legislation which will define the Solvency II regime. The eventual decision on these measures will be made by the European Commission in 2010 but they will be heavily guided by advice they have requested from CEIOPS. Further sets of proposed advice are due in June/July 2009 and Autumn 2009.
"These developments are a sign that the Solvency II timetable is now fully under way," said Graham Fulcher, Watson Wyatt's UK Non-Life Practice Leader. "The CEIOPS advice is the first formal stage of the Level 2 process, colouring in the gaps in the outline regulation of the Framework Directive and providing the detailed implementing measures which will set out how the Solvency II legislation has to be implemented by national regulators."
The draft advice from CEIOPS is subject to a three-month consultation period and Watson Wyatt urges all interested stakeholders to engage in this process, which will be crucial to the future of insurance regulation.
Note to editors
The relevant CEIOPS press release can be found at: www.ceiops.eu/media/files/consultations/consultationpapers/Cover-letter-Consultation-Papers-26-37-SII-Level-2-draft-advice.pdf
For more information please contact:
Bruce Wraight
Head of Public Relations, Europe
Watson Wyatt
+44 (0) 1737 273370
+44 (0) 7771 765154
bruce.wraight@watsonwyatt.com
Visit Watson Wyatt's online press office: www.watsonwyatt.com/europe/news/journalists
Watson Wyatt Worldwide
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