Answers to the European Commission on the ... - Eiopa - Europa

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Review of Effective Financial Services Supervision', are also taken in<strong>to</strong> account, insofar as <strong>the</strong>y are available; • on-site assessment: On-site assessments may last up <strong>to</strong> one week. Examination of supervisory practice procedures should be given <strong>to</strong>p priority during this time; • post-processing phase: The information and experiences obtained are collected by <strong>the</strong> Review Panel and summarised in a report in <strong>the</strong> post-processing phase. The authorities concerned are able <strong>to</strong> review <strong>the</strong> report. Choosing <strong>the</strong> supervisory authority <strong>to</strong> be reviewed 17.34 ’Peer review is a co-operative process conducted on a voluntary basis aiming for supervisory convergence. Among those supervisory authorities which have volunteered, <strong>the</strong> Review Panel proposes a selection <strong>to</strong> be assessed, which must be approved by CEIOPS. This selection must take in<strong>to</strong> account a number of different criteria: Peer review report • <strong>the</strong> quality of <strong>the</strong> anticipated supervisory implementation of <strong>the</strong> guidelines <strong>to</strong> be examined; • <strong>the</strong> scope of <strong>the</strong> anticipated alternative implementation of <strong>the</strong> guidelines <strong>to</strong> be examined; • a schedule, on <strong>the</strong> basis of which all supervisory authorities are subjected <strong>to</strong> a peer review, according <strong>to</strong> <strong>the</strong> capacities of <strong>the</strong> domestic supervisory authorities. Confidentiality and structure of <strong>the</strong> report (restricted use) 17.35 The assessment team produces a final report at <strong>the</strong> end of each peer review. This contains <strong>the</strong> experiences obtained during <strong>the</strong> execution of <strong>the</strong> self-assessments and as part of any on-site assessments, as well as <strong>the</strong> self-assessment questionnaires of <strong>the</strong> supervisory authorities and <strong>the</strong> individual reports of <strong>the</strong> on-site assessment teams, as reviewed by <strong>the</strong> authorities concerned. Peer review reports must be treated in strict confidence and are only available <strong>to</strong> <strong>the</strong> Review Panel and members of CEIOPS, though <strong>the</strong>y may ultimately be published with <strong>the</strong> agreement of members. Consequences and recommendations (conclusions and follow-up measures in response <strong>to</strong> <strong>the</strong> final report) 17.36 CEIOPS uses <strong>the</strong> final reports from peer reviews as <strong>the</strong> basis for drawing up or improving its standards, guidelines and recommendations. Individual members may also use <strong>the</strong> reports as a 200
asis for considering improvements <strong>to</strong> <strong>the</strong>ir supervisory regimes where appropriate. Reinforcement of <strong>the</strong> recommendations 17.37 In Section 4.3 of CEIOPS’ Articles of Association, all members have consented <strong>to</strong> voluntarily adopt all agreements, standards, commitments and actions agreed within CEIOPS in so far as possible. CEIOPS’ Advice 17.35 CEIOPS supports <strong>the</strong> inclusion of high-level general principles in <strong>the</strong> Framework Directive on peer reviews <strong>to</strong> promote increased convergence of supervisory working methods, <strong>the</strong>reby securing highlevel protection for policyholders. 17.36 CEIOPS will define a set of level 3 principles and measures which supervisors should take in<strong>to</strong> account when designing a concrete procedural framework for <strong>the</strong> peer review. 201
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CEIOPS-DOC-07/05 Answers</s
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Style convention The following has
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• Safety measures (CfA 9); • So
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sole purpose is to
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Call for Advice No. 7 Technical pro
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one year). Therefore, capital requi
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perhaps through an explicit additio
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Discounting 7.22 The present value
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exposed to risk fr
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insurance liabilities set by refere
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Profit sharing In practice, for uni
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future cash flows will have <strong
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Explanatory text S
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always have resources to</s
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developed. They would help
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8.28 A fourth option could be envis
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In principle, "the
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8.48 Three alternatives can be cons
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essential part of the</stro
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statistical estimate (with a level
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8.77 It may be argued that
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to use more sophis
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consequence on the
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8.105 In some cases, the</s
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This shall be reviewed, at least an
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ut the exposure <s
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Explanatory text M
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9.15 Solvency II could also employ
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9.28 The life formula yields itself
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underestimate them
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'Prudent person plus' approach 9.52
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Uniform or different rules for tech
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through a prescribed list. Lists ar
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addition a range of stresses so tha
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(including the Rei
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for review of the
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eligibility criteria, or principles
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should not lead to
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• the degree of
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9.156 The senior management shall r
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- going-concern aspects of business
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features. 81 TailVaR is an example
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10.17 The SCR should also reflect <
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10.26 The risk of asset liability m
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Naturally, the pra
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too few categories
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- Choice of volume measures 10.57 W
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Underwriting risk in non-life insur
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volatility of thei
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those insurers this possible increa
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10.103 A factor-ba
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10.112 Assessing whethe</st
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10.121 The SCR should deliver a lev
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whenever its effects on the
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scenario techniques to</str
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Operational risk just ratings infor
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Call for Advice No. 11 Solvency cap
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Costs and Benefits 11.6 It should b
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• Qualitative requirements for <s
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11.19 Risk management criteria set
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individual undertaking is exposed a
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• sensitivity analyses that have
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• visualizations of flows of prod
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Partial models and the</str
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11.58 There should be few descripti
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of the SCR estimat
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equirements to imp
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Call for Advice No. 12 Reinsurance
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Reflection in technical provisions
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• provide an estimate of an under
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particular reinsurer(s)’ aggregat
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they auto<
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einsurer to <stron
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should be a reduction in risk regar
Page 149 and 150: Call for Advice No. 13 Quantitative
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Page 159 and 160: Background 14.1 Current insurance D
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Page 169 and 170: off all contracts; • to</
Page 171 and 172: Call for Advice No. 15 Solvency con
Page 173 and 174: Minimum capital requirement (MCR) D
Page 175 and 176: adjusted SCR. From a purely technic
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Page 183 and 184: Bolkestein agreed to</stron
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Page 189 and 190: 16.28 It should also be noted that
Page 191 and 192: Time of application 16.41 The asses
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Page 195 and 196: Background 17.1 This document aims
Page 197 and 198: Review Panel would be a permanent g
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Page 205 and 206: (II) Capital requirements at group
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Page 209 and 210: 18.31 Additionally, it must be deci
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Page 215 and 216: 18.60 In view of the</stron
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Page 225 and 226: Annexes Annex A (Call for Advice No
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Page 229 and 230: Specific principles for non-life in
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Page 239 and 240: TVaR1-α for Tail Value-at-risk. In
Page 241 and 242: Degree of personalisation B.24 Tran
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Page 245 and 246: Segmentation B.44 In general terms,
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Dutch supervisory authority for <st
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Market risk Equity risk this altern
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B.95 In a scenario-based approach,
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B.106 As an alternative one could t
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where: KTSA = the
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Results from the a
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Solvency ratio prior to</st
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Number of instances Risk group Deta
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Conclusion In general, the<
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where: TP gross = technical provisi
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premium risk, the
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“While proportional reinsurance t
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contribute with any additional info
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E.29 Another way <
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programmes on the
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