The report concludes that supervisors’ transition to the new solvency framework is proceeding at an increasing pace involving changes in mentality and competences, covering all the different areas of the supervisory authorities, demanding increased resources and often implying reorganisation.
The Report on the preparedness of supervisors to implement Solvency II presents the results of a detailed and extensive stock taking exercise undertaken by CEIOPS in the first half of 2010. The aim of this exercise was to provide CEIOPS and its Members a clear and comprehensive overview of current levels of supervisory preparedness for Solvency II. CEIOPS also sought to identify areas where action is still needed in order to ensure the proper level of convergence of supervisory practices in the new solvency framework.
The main conclusions are:
· Implementation of Solvency II is well underway in all surveyed supervisory authorities. The level of advancement differs amongst supervisory authorities as work on the implementation of Solvency II is an unprecedented complex and challenging process in the area of insurance supervision.
· Supervisors’ transition to the new solvency framework is proceeding at an increasing pace involving changes in mentality and competences, covering all the different areas/sectors of the supervisory authorities, demanding increased resources and often implying reorganisation. This is applicable even for Members whose current regime already envisages forms of risk and principle based supervision.
· Surveyed supervisors have acknowledged the strong role of CEIOPS in ensuring its Members are fully prepared for the new solvency regime. The Solvency II Working Groups, CEIOPS’ training of staff, the different QIS exercises and the pre-application for internal models were identified as the main drivers of the overall process of Solvency II implementation within supervisory authorities.
· CEIOPS stock taking exercise has also revealed that further changes are still needed to bring supervisory methodology, tools and procedures in line with the demands of Solvency II.
© CEIOPS
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