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Member, Beacon International Group, Ltd.
FRANKFURT, Germany—Captives performed well in the latest test of Solvency II, the risk-based capital regulatory regime slated for introduction in Europe at the start of 2013, according to the European Insurance & Occupational Pensions Authority.
Large captives will fall under the scope of Solvency II, although they will be subject to the “principle of proportionality” and to less onerous capital requirements than other insurers to reflect their relative size and complexity.
In a briefing on the results of the most recent quantitative impact study, QIS5, on Solvency II’s effects, EIOPA said 175 captives took part in the exercise.
The regulators of European captive domiciles that came under the study’s scope did not report any significant problems with captives’ ability to complete the test, said Perrine Kaltwasser, task force leader for QIS5 at Frankfurt-based EIOPA.
“There were no specific concerns expressed” by or about captives, she said in the briefing.
“We want to make sure that captives are a part of Solvency II, but in a way that is in line with the specifics of their business,” said Carlos Montavlo, executive director-elect of EIOPA.
FRANKFURT (Bloomberg)—More than two-thirds of Europe’s insurers participated in the fifth test of a proposed new regulatory framework.