On 31 March 2010, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) published the first of its Level 3 guidance for Solvency II.

The Level 3 guidance, on the pre-application process for internal models, marks the start of the next stage in ensuring implementation of Solvency II by 31 October 2012 and follows swiftly after CEIOPS published its final Level 2 advice. CEIOPS’ focus will now be on delivering Level 3 guidance for all areas of Solvency II.

In relation to the pre-application process for internal models, CEIOPS notes: 

  • whilst the pre-application process is voluntary, it is beneficial both for undertakings and supervisors to have a consistent internal models pre-application process;
  • the pre-application stage to the approval process will assist undertakings by giving them the opportunity to liaise with their supervisor as they develop internal models; and
  • the information reviewed will enable supervisors to form a view on how prepared an undertaking is to submit an application.

The CEIOPS press release can be found here and the full guidance paper is here.