The results from QIS5 published by EIOPA show that in many areas the requirements tested were broadly appropriate, but a significant number still require change.
On 14 March 2011, the European Insurance and Occupational Pensions Authority (EIOPA) published the results of the fifth Quantitative Impact Study (QIS5) for Solvency II. QIS5 was conducted between August and November 2010 to assess the impact of the revised valuation rules and the Solvency II capital requirements on the European insurance industry.
QIS5 is the final and most comprehensive road test of Solvency II’s requirements and gives the best picture of the likely solvency position of insurers under Solvency II’s requirements which come into force in January 2013.
The findings of QIS5 will influence the European Commission in finalising its proposals, due to be published in June 2011, as to how Solvency II will be implemented. Whilst in many areas EIOPA’s report indicates that the requirements tested in QIS5 were broadly appropriate, there are a number of significant areas identified where further changes are likely.