The Solvency II project aims to review the prudential regime for insurance and reinsurance undertakings in the European Union. As a first step, the Solvency II Directive was adopted by the Council of the European Union and the European Parliament in November 2009.
Revisions to the Solvency II Directive are expected from the Omnibus II Directive.
In December 2013, the Council of the EU adopted the Directive scheduling the application date of the Solvency II Directive for 1 January 2016.
EIOPA and its predecessor, CEIOPS, have been advising the European Commission on the project in its various stages of development since 2004. This has included:
EIOPA’s Final Level 2 Advice has been accompanied by five quantitative impact studies. In 2013 EIOPA also provided the European Commission with technical findings on the Long-Term Guarantee Assessment.
The project remains one of EIOPA’s major work streams. The Omnibus II Directive sets the scope of the technical standards to be drafted by EIOPA to support the implementation of the new regime. EIOPA will also draft guidelines to support the consistent application of the Solvency II Directive.
On 31 January 2014, EIOPA has set up the timeline for the delivery of the Solvency II Implementing Technical Standards and Guidelines.
The overall goal of the project is to deliver the regulatory and supervisory framework for the technical implementation of the Solvency II regime from the first day of application, 1 January 2016.
It is of high importance to ensure a timely and proportionate application of Solvency II.
The key products of this project will be the Implementing Technical Standards (ITS)1 and the Guidelines2 for Solvency II.
EIOPA is going to prepare
two sets of ITS:
“Pillar 1 (quantitative basis), Pillar 2 (qualitative requirements), Pillar 3 (enhanced reporting and disclosure) and supervisory transparency”.
two sets of Guidelines:
“Guidelines relevant for approval processes, including Pillar 1 (quantitative basis) and internal models”;
“Guidelines relevant for Pillar 2 (qualitative requirements) and Pillar 3 (enhanced reporting and disclosure)”.
1The Implementing Technical Standards are legally binding and aim to ensure the uniform application of the Solvency II Directive.
2The Guidelines are necessary to guarantee convergence of the Solvency II implementation as of the first day of its entry into force. After the issuance of the Guidelines in all the official EU languages, national supervisors will be reporting to EIOPA about their compliance or intention to comply within 2 months.
April – June 2014
Public consultation on the Set 1 of the ITS
June – September 2014
Public consultation on the Set 1 of the Guidelines
31 October 2014
Submission to the EC of the Set 1 of the ITS
December 2014 – March 2015
Public consultation on the Set 2 of the ITS
December 2014 – March 2015
Public consultation on the Set 2 of the Guidelines
Publication of the Set 1 of the Guidelines in all the official EU languages
30 June 2015
Submission to the EC of the Set 2 of the ITS
Publication of the Set 2 of the Guidelines in all the official EU languages
1 January 2016
Application of the Solvency II regime
EIOPA will benefit from the input provided by all the interested parties during the public consultation process and in particular from the close liaison with its Insurance and Reinsurance Stakeholder Group.
In October 2013 EIOPA issued guidelines for preparation for Solvency II. These aim to ensure that the National Competent Authorities, insurance companies and groups take active steps towards a consistent and convergent implementation of key elements of Solvency II and they cover the areas of: