Recent Developments

Abstract

After the closing of the interview phase, ILS markets have gone through an extraordinary period facing rapid changes. The latest key developments until July 2009 are summarised as follows: There is a common understanding that state-of-the-art principle-based solvency regimes are imperative to maintain the financial stability of the insurance industry globally. In Europe, the last QIS 5 will be done in 2010 in order to test the soundness of the announced Solvency 2 architecture (Level 1 of the process). The European Commission started in 2009 with the design of the implementation measures necessary for the finalisation until 2012 (Level 2). Further, a comprehensive reform of the EU insurance oversight is being discussed which may result in three committees, each for the supervision of insurance, banking, and securities (Level 3).