CEIOPS’ website, with full details of its advice, can be found here.
Significance of the implementing measures
Solvency II implementing measures are detailed requirements that will apply to insurers. Much of Solvency II’s impact on insurers – including Lloyd’s managing agents - will be a consequence of the implementing measures rather than the Solvency II directive.
The Solvency II directive indicates in many places that the European Commission has powers to adopt implementing measures for specified topics. The Commission requested advice from CEIOPS on these implementing measures. Decisions on the form that implementing measures will take are up to the Commission: it will consider CEIOPS advice very carefully, but is not bound to follow it.
Next steps
To December 2010
Commission holds discussions with EIOPC, European Parliament and stakeholders.
EIOPC Solvency Experts Group holds drafting meetings.
December 2010
Commission formally adopts implementing measures.
To October 2011
EIOPC considers proposals and offers an official opinion.
European Parliament scrutinises proposals.
October 2011
Implementing measures in place.
October 2012
Solvency II comes into force.
Lloyd’s responses
CEIOPS issued 54 consultation papers this year in three tranches. Lloyd’s (working with LMA members) responded to 41 of these. The most important points made in Lloyd’s submissions can be read here. Many other EU insurers and their associations also responded and made similar points.
CEIOPS’s responses to Lloyd’s comments are set out on the consultation paper pages on lloyds.com via this page.
Continuing lobbying activity
The submission by CEIOPS of final advice means that the focus of lobbying activity has shifted to the European Commission. There are still opportunities to influence the contents of implementing measures before they are finalised by the EU. CEIOPS’s responses to comments on their proposals for implementing measures show that it gave consideration to all the feedback it received and was prepared to make adjustments to its advice in many areas. However, on a number of points it did not feel able to amend its approach, so Lloyd’s is continuing to seek changes, to ensure that Solvency II’s stated objectives are fully realised in relation to the Lloyd’s market.
Lloyd’s strategy is one of constructive and continuous regular engagement with policymakers, without losing sight of the benefits that Solvency II’s implementation with provide to the EU insurance industry. This engagement is occurring at several levels, involving dialogue with key individuals in EU institutions, the UK and other parts of the national and European insurance industry, to coordinate input. Lloyd’s contacts with the Commission entail regular face-to-face meetings with senior Commission personnel, to ensure that they are fully aware of Lloyd’s views. Where appropriate, Lloyd’s provides detailed assessments of particular proposals, setting out why it considers a particular approach would be preferable. Lloyd’s is also meeting key MEPs on the European Parliament’s Economic and Monetary Affairs Committee, to explain its concerns.
Lloyd’s is holding regular meetings with the Treasury and the FSA in the UK, as these continue to have important inputs to the decision-making process. The Treasury, due to its representation on EIOPC, is keeping Lloyd’s and other insurers informed of the development of implementing measures and seeking feedback on particular issues. Lloyd’s is actively cooperating with other stakeholders, particularly the ABI and the CEA, to ensure that, so far as possible, the industry’s views are coordinated and compatible.
Work on the implementing measures will continue through 2010. Lloyd’s will continue to lobby actively on this issue to ensure that its views are heard and will continue to seek appropriate and satisfactory outcomes for the Lloyd’s market.
