The European Insurance and Occupational Pension Authority (EIPOA) has issued its first Solvency II consultation on draft guidelines for Pillars I and II, together with an impact assessment study.
Included in EIOPA's consultation is a paper on Pillar I, covering guidance on technical provisions, own funds, the standard formula solvency capital requirement and group solvency. Views are also sought on guidelines on the use of internal models.
Regarding Pillar II, the consultation seeks responses on the system of governance and own risks and solvency assessment (ORSA). EIPOA are also seeking comments on the supervisory review process and equivalence assessments guidelines.
The regulator said that the consultation fulfilled its commitment to openness and transparency. A second consultation will follow this one.
Commenting on the paper, KPMG advised all insurers to carefully read the draft guidelines to fully understand its impact on their business.
Janine Hawes, insurance director at KPMG, said: 'The five papers include over 500 individual guidelines that the national competent authorities will need to make their best efforts to adopt, if they are not materially changed post consultation. This will follow the usual comply or explain route.
'The material has relevance to all firms that will need to comply with Solvency II. As well as the guidelines themselves, the papers include extensive explanations to help firms understand the requirements. These papers make public for the first time much of the material that was subject to private pre-consultation, giving the same insight now to all firms.'
Consultation responses need to be submitted to EIOPA by August 29 using the template provided on the regulator's website.