The second half of 2008 will be crucial for the Solvency II project. The European Parliament and the Council are expected to reach agreement on the Level 1 framework Directive, and CEIOPS will process and publish the results of the fourth Quantitative Impact Study (QIS 4). In the process, key decisions will have to be taken, decisions that will shape the European regulatory environment for insurance companies for the years to come.

There is agreement among stakeholders on both the objectives and the key risk-based principles of the Solvency II framework. Several key issues however remain to be solved. It is a challenging task to find suitable satisfactory solutions to these issues that will meet stakeholders’ concerns while strengthening and completing the framework and enabling Solvency II to reach its objectives. Moreover, with Parliament elections and a new Commission in 2009, time is becoming a factor, and delay cannot be an option. For further information please refer to the EPFSF Briefing Paper.