The QIS exercises have been utilised by the European Insurance & Occupational Pensions Authority (EIOPA) to assess the financial impact and appropriateness of the Solvency II Directive requirements. The Central Bank of Ireland engaged in QIS3, QIS4 and most recently QIS5 with a number of Irish authorised insurance undertakings.
EIOPA (and its forerunner CEIOPS) conducted its fifth Quantitative Impact Study (QIS5) between August and December 2010. The EIOPA report arising from the exercise was published in March 2011.
The main objectives of the QIS 5 exercise were:
- To increase the level of preparedness of both industry and supervisors
- To calibrate the Level 2 Implementing Measures
- To assess the needs and contents of the Level 3 guidance relating to Pillar 1
A summary report specific to the Irish Insurance Industry is attached below. There was strong participation from the Irish insurance industry with 220 full quantitative submissions received. Whilst the exercise provided very useful data on the impact of QIS5 calbrations, the QIS5 exercise was a test at a particular point in time and did not purport to represent or pre-judge the final calibrations.
Summary of Irish Industry Submissions for QIS5 - Final Report.pdf
EIOPA QIS 5 Report & Annexes
CEIOPS conducted its fourth Quantitative Impact Study (QIS4) under the Solvency II project in April – July 2008. The goals of QIS4 were:
- To collect quantitative information about the possible impact on the Balance Sheets and the amount of capital that might be needed were the approach and calibrations set out in the QIS4 specification to be adopted as the Solvency II standard
- To check that the Technical Specification is aligned with the draft Directive
- To collect data to support analysis of options for Level 2 measures
- To encourage preparation for Solvency II
The Irish report (below) presents a summary of the findings pertaining to the Irish markets’ contribution to the QIS 4 study. Participation was strong with submission numbers greatly improved over QIS3.
QIS4 Irish Report
QIS4 CEIOPS Guidance Note
QIS4 Solo Spreadsheet
QIS4 Group Spreadsheet
CEIOPS conducted its third Quantitative Impact Study (QIS3) under the Solvency II project in April-June 2007. The goals of QIS3 were:
- To gather further information about the practicability and suitability of the calculations involved
- To collect quantitative information about the possible impact on the Balance Sheets and the amount of capital that might be needed if the approach and the calibration set out in the QIS3 specification were to be adopted as the Solvency II standard
- To test the suitability of the suggested calibrations for the calculation of the SCR and the MCR
- To seek information about the effect of applying the QIS3 specification to insurance groups The Irish report (below) summarises the results of submissions and highlights a number of salient issues arising from the Irish company participation in this iteration of the QIS series of studies.
QIS3 Irish Report
QIS3 CEIOPS Cover Note