The Commission has launched a fifth Quantitative Impact Study (QIS5) that will be run by the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) from August to November 2010. The European Commission strongly encourages insurance and reinsurance companies across the EU to participate in this exercise.

QIS5 is the latest in a series of studies initiated by the Commission in order to ensure the most accurate formulation of the Solvency II framework. QIS1 to QIS4 took place between 2005 and 2008 and the results of these studies provided the empirical basis for the preparation by the Commission of the Solvency II Directive, as well as for the subsequent negotiations between the European Parliament and the Council. The Solvency II Directive, adopted by the European Parliament and the Council in 2009 and to be implemented by 1 January 2013, has set the framework for the next generation of supervisory rules for insurance and reinsurance companies in the EU.

The results from the fifth QIS will provide input to help refine the calibration of the Solvency Capital Requirement standard formula, as well as the requirements for technical provisions and own funds in the level 2 implementing measures. The results from QIS5 will be discussed in detail with the Member States, as well as with other stakeholders.

It is essential for the successful introduction of the Solvency II framework that QIS5 provides solid data that is representative of companies across insurance business lines and Member States. This can only be ensured through a high level of participation in QIS5. The Commission aims for a participation rate of at least 60% of EU insurance and reinsurance companies and 75% of EU insurance groups. It is particularly important that smaller insurance companies, as well as insurance providers specialised in specific business lines participate in the exercise.

The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS)has made available the QIS5 spreadsheets on its web site

On Solvency II

The aim of the so-called “Solvency II” framework is to ensure that insurance and reinsurance undertakings are financially sound and can withstand adverse events in order to protect policy holders and the stability of the financial system as a whole. In addition to quantitative requirements, such as capital requirements, insurance and reinsurance companies will be required to meet qualitative requirements relating to governance and risk-management, as well as to regularly disclose information to supervisors and to the public.