Study Impact (Impact Assessment Study)

The development of Solvency II presents a unique opportunity to create a unified structure at European level, enabling companies to operate and manage risk more efficiently, adjusting capital requirements in proportion to the risks.

This goal motivated 442 insurance companies to actively participate in the Impact Study (CEA’s Impact Assessment Survey), conducted in response to the request of the European Commission. The European Commission is to evaluate the potential impact of any new regulations.  The impact study was part of this analysis. Participants showed a great commitment to the Solvency II draft. They also showed their support for the idea of risk analysis based economic framework for insurance supervision. This commitment was expressed, among others through the compliance of all concerned, regardless of size and legal form.

Impact Study is intended to provide insight into the following issues:

  • financial and microeconomic stability       
  • insurance companies and regulators
  • insurance markets and products
  • consumers

Part I of the document presents the key findings of the Impact Study conducted in the summer of 2006. It provides a reader with information about the potential impact of the risk based Solvency II Framework Directive on:

  • the insurers current practice on risk management;
  • administrative costs,
  • continuing a strong and effective protection of the insured,
  • design and prices of the insurance products,
  • insurers investment strategies,
  • reinsurance contracts and reinsurance companies,
  • the ability of insurers to raise capital.

As the survey is based on the assumption that Solvency II will lead to an appropriate, recommended by the insurance industry, risk-based economic approach, the interpretation of the resulting evaluation effects is dependent on this assumption. As described in Part II of the publication, any deviations from this approach entail negative consequences.

The main results of Impact Research conducted by CEA can be found in the document below: