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4/24/14

European Insurance Industry: Solvency II technical draft too harsh, firms claim - by Hugo Coelho

Insurance industry representatives have called on the European Insurance and Occupational Pensions Authority (Eiopa) to soften draft Solvency II technical specifications, arguing that some of the specifications are not aligned with parts of the Solvency II legislation and impose harsher requirements than politicians intended.

An updated draft of the technical specifications, circulated in March for consultation, is inconsistent with the Solvency II delegated acts in relation to ring-fencing requirements and the calculation of the volatility adjustment, insurers say.

The technical specifications provide the details that insurers will use both to calculate their regulatory capital for forthcoming Eiopa stress tests and to complete reporting exercises during the preparatory period for Solvency II, which comes into force in 2016. They are subordinate to the delegated acts – the second layer of Solvency II legislation now being finalised by the European Commission.

Read more: Solvency II technical draft too harsh, firms claim - Risk.net

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