Solvency II - Captives

The topic of Solvency II was discussed during the European Affairs workshop at the FERMA 2009 Risk Management Forum.
A FERMA working party under Belgian risk manager Martine Hecq prepared a response to the latest Solvency II implementation paper from the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), which advises the European Commission.
The paper was published on 2 November, and further comments were sent in December 2009.
FERMA’s main concern is to ensure an appropriate regime for captive insurance companies under the final text of Solvency II, and together with the European Captive Insurance and Reinsurance Owners’ Association (ECIROA), it formulated its comments in a letter to the Ministries. ECIROA was set up in August 2008 to support the captive industry and represent its members in discussions with official bodies. Both organisations argue that Solvency II should recognise the special nature of captive companies and regulate in proportion to the risks. They say that captives differ from commercial insurance and reinsurance companies in that they have a limited number of lines of business, risks and clients.

Project Leaders: Martine Hecq and Pierre Sonigo