Posts Tagged ‘CEIOPS’



December 2nd, 2010

Solvency II Update: QIS5 Windstorm Scenarios Are Within Range of Industry Models

Posted at 3:00 AM ET

Frank Achtert, Managing Director, Eddy Vanbeneden, Managing Director, and Maximilian Strasser, Senior Vice President
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European insurers and reinsurers will face requirements for full compliance with the new Solvency II capital regime requirements in just over two years. Even if this introduction is phased in — as the European Commission has reportedly indicated it could be — these requirements will have a wide-ranging and profound impact on the insurance industry throughout Europe.

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August 23rd, 2010

QIS5 – Premium and Reserve Risk: Sufficient Consideration of Non-proportional Reinsurance?

Posted at 1:00 AM ET

Frank Achtert, Managing Director, Financial Intelligence Team, and Sebastien Portmann, Vice President, Financial Intelligence Team
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On July 6, 2010 the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) published the technical specification for the latest Solvency II Quantitative Impact Study (QIS) 5. QIS5 is scheduled to be carried out from August to November of 2010, with a report summarizing the results scheduled for release in April of 2011. Regarding the non-life premium and reserve and risk, Guy Carpenter & Company, LLC has observed a return to capital requirements more in line with QIS4 and an implicit incentive for the use of an internal model.

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June 28th, 2010

The Time Profile of Risk: From the Desk of Guy Carpenter’s Chief Actuary

Posted at 1:00 AM ET

mango_smallDon Mango, Chief Actuary
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According to the draft European Union Solvency IIc directives, companies will need to provide an “own risk and solvency assessment” (ORSA). The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has prepared an issues paper that provides guidance to assist (re)insurers in implementing the ORSA.

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May 24th, 2010

Solvency II – Non-Life Underwriting Risk in Light of QIS 5

Posted at 1:00 AM ET

Frank Achtert, Managing Director, Financial Intelligence Team, and Sebastien Portmann, Vice President, Financial Intelligence Team
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On April 15th, 2010, the European Commission (EC) published its draft technical specifications for the next Quantitative Impact Study (QIS) 5, which will be implemented from August to November of 2010. Based on empirical evidence, the general calibration of the standard formula solvency capital requirement (SCR) may fall between the calibration of QIS 4 and the calibration seen in the rigid proposals of the various consultation papers (CP) submitted during 2009. This article takes a deeper look at the calibration of non-life underwriting risk as part of the overall SCR calculation.

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April 15th, 2010

Solvency II - Approval of Internal Models: Article Link Index

Posted at 12:00 PM ET

The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) published many consultation papers in 2009 focusing on Level 2 implementation measures for Solvency II. Consultation Paper (CP) 37 addressed the procedures for approval of internal models. It was followed by a final paper entitled “CEIOPS Advice for Level 2 Implementing Measures on Solvency II ‘The procedure to be followed for the approval of an internal model’”, published in October, 2009.

This series reviews the implementation measures described in the final papers. Implementation measures for the use of partial internal models are briefly described in these two CEIOPS papers. A separate consultation paper, CP 65, proposed specific implementation measures for approval of a partial internal model when it is used in conjunction with the Solvency II Standard Formula. Those specific implementation measures will be covered in a future briefing.

  
Solvency II - Approval of Internal Models:  Part I: Introduction & Prerequisites for Approval >>

Solvency II - Approval of Internal Models:  Part II: The Approval Process >>

Solvency II - Approval of Internal Models:   Part III: The Approval Timeline, Approach for Group Internal Models & Conclusions >>

Solvency II - Approval of Internal Models:  Part IV:  Appendices >> 

 

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April 8th, 2010

Solvency II In Depth

Posted at 10:00 AM ET

Guy Carpenter & Company, LLC sponsored this extended roundtable discussion that considered the progress made by (re)insurance as the Solvency II regime approaches. Held in London, it was attended by a number of UK and continental Europe industry leaders, including Guy Carpenter Managing Director and European Solutions Group Leader Eric Paire. We present the text of the roundtable discussion here as it appeared in Reinsurance Magazine. 

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April 5th, 2010

Solvency II - Approval of Internal Models: Part IV, Appendices

Posted at 10:00 AM ET

Eddy Vanbeneden, Managing Director
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This series concludes its review of the implementation measures described by CEIOPS regarding procedures to be followed for the approval of an internal model. The appendices are presented today.

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April 2nd, 2010

Solvency II - Approval of Internal Models: Part III, The Approval Timeline, Approach for Group Internal Models & Conclusions

Posted at 9:30 AM ET

Eddy Vanbeneden, Managing Director
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This series continues its review of the implementation measures described by CEIOPS regarding procedures to be followed for the approval of an internal model.

4.   Approval timeline

When the application package for internal model approval is submitted, the regulator will have six months to approve the model or reject it. This period starts on the date when the application is considered complete and will be suspended while the regulator waits for any additional information or for any minor adjustment. It will be stopped when the regulator asks for any major or new modification or when the company decides to withdraw its model from the approval process.

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March 31st, 2010

Solvency II - Approval of Internal Models: Part II, The Process of Approval

Posted at 10:00 AM ET
Eddy Vanbeneden, Managing Director
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This series continues its review of the implementation measures described by CEIOPS regarding procedures to be followed for the approval of an internal model.

3. Approval process of internal models

The official form submitted by (re)insurers for approval of their internal model has many requirements:

  • A rationale for the use of the internal model
  • Results of a self-assessment of internal model readiness, mainly regarding Level 1 articles defining the use of internal models for Solvency II. This self assessment should cover a technical review of the internal model (scope, design, build, integrity and applications) and more particularly should define the following elements:

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