The implementing measures for Solvency II, level 2, published in the European Union's Official Journal of 17 January 2015, represent a key step towards implementation of the directive, which will apply to European insurance companies from 1 January 2016.
The aim of the directive is to develop internal organisation ans assessment models to manage risks and guarantee solvency.
The directive is based on three pillars:
- The first pillar sets out the quantitative financial requirements.
- The second pillar makes the setting up of a risk management body compulsory.
- The third pillar states the information that must be provided to the supervisory authorities and the public for better transparency.
Solvency II timeline
11 March 2014The Omnibus II Directive adopted by the European Parliament
22 May 2014Publication of the Omnibus II Directive in the OSEU
10 October 2014The European Commission adopted the delegate Act
12 January 2015Level 2, end of the objection period
31 March 2015End of Solvency II Directive transposition period
2015Submission to the European commission of Level 3 text
1 January 2016Application of the Solvency II regime
Challenges & Solutions
- Reporting obligation to national competent authorities (pillar 3)
- Financial data enhancement and look-through approach
- Solvency Capital Requirement (SCR) calculation
CACEIS offers asset managers and insurance companies tailor-made solutions for the production of reporting in compliance with Solvency II Directive.
- Inventories recovery, data enhancement and look-through
- Quarterly look-through inventories
- Calculation of aggregates of the gross market SCR