EIOPA’s Guidelines for the preparation of Solvency II have acquired a slightly different meaning as a result of the Omnibus II agreement last November and the certainty about the implementation date. One of the primary objectives of the Guidelines was to keep the momentum after trilogue negotiations stalled in the autumn of 2012. The Omnibus II agreement shifts the focus to the Guideline’s other objectives: phased-in preparation for Solvency II and a consistent and convergence approach to the preparation across Member States, ahead of the implementation date of 1 January 2016. Supervisory authorities were given until 31 December 2013 to tell EIOPA their intentions with respect to the Guidelines in a comply or explain exercise. The responses to this exercise can be seen as a barometer for the intentions of both supervisors and industry in the next two years. Solvency II Wire conducted quantitative analysis of the responses that reveals a strong intention to apply the Guidelines across Europe.
The GuidelinesOn 27 September 2013 EIOPA published the final draft of its Guidelines for the preparation of Solvency II. The Guidelines cover four areas of Solvency II preparation:
- SOG – System of Governance (CP-13/08)
- FLAOR – Forward Looking Assessment of Own Risks (CP-13/09)
- Reporting – Submission of Information to National Competent Authorities (CP-13-10)
- PAIM – Pre Application of Internal Models (CP-13/11)