The ITS contains a table assigning the appropriate Credit Quality Steps to the rating categories of ECAIs. This mapping serves the calculation of the Solvency II capital requirements under the Standard Formula and contributes to improving risk management of EU insurers.
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched a consultation on draft Implementing Technical Standards (ITS) on the allocation of External Credit Assessment Institution (ECAIs) to an objective scale of credit quality steps under Solvency II.
The overall objective of this ITS is to reach consistency between the banking and the insurance framework in this area. The public consultation will end on 10 April 2015.
The proposed draft ITS have been developed on the basis of Article 109 (a) of Directive 2009/138/EC (Solvency II Directive). The Joint Committee intends to submit the draft ITS to the European Commission for endorsement on 30 June 2015.
Full Consultation paper
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