SIOPA opinion on the calculation of the group`s solvency in relation to equivalence Progress seemed to have been slogged down overall in the summer of 2013, with commentators arguing that the date of 2014 was not feasible, with alternatives from 2015 to 2017 or even later. The turning point came when the European Insurance and Occupational Pensions Authority (SIOPA) carried out, at the commission`s request, an impact assessment on all measures relating to long-term guarantees. The SIOPA final report was published in June 2013 and paved the way for a trilogue agreement on long-term guarantees and issues related to the calculation of pension liabilities. Further changes to the PRA regulatory framework and supervisory statements regarding the implementation of the new solvency regime are expected. Among the areas covered, the AIR Solvency II guides contain information from protected and confidential documents intended for use by AIR customers, subject to restrictions on the confidentiality rules contained in the license and confidentiality agreements, which may be clearly distinct by confidentiality statements contained in the documents themselves. AIR customers may use extracts and parts of AIR documents to meet the validation requirements of the Solvency II model, if the information is properly provided, including the title of the AIR document and the numbers of the illustrations or tables used. Where such extracts are used, the standard documentation of the payer may only be distributed within the entity itself and to the regulatory authority, in accordance with existing licensing and confidentiality agreements. Solvency II is a European Union directive that aims to reduce the risk of insolvency by implementing a uniform set of rules applicable to insurers in all Member States and the United Kingdom. AIR is committed to helping companies meet Solvency II requirements as their influence increases. Insurance Supervisors Conference (ISC) recommends introducing additional parameters into the creditworthiness assessment in the report The Solvency Capital Requirement (SCR) represents the target level of solvency that an insurer or reinsurer must maintain. This is an entirely risk-based calculation, which can be performed either by a standard formula or by the use of internal models (or a combination of both). In principle, the SCR is the amount of capital needed to leave a chance of less than 1 in 200 that the capital will be insufficient next year.
During the preparatory phase, two annual assessments will be proposed to help companies demonstrate their progress of the ORSA to the PRA. The second assessment should be higher in view of market conditions, the changing risk profile and the experience gained in the previous year. SIOPA takes a differentiated approach to the ORSA Guidelines. .