The European risk association approves the special amendments regarding the regulation of captives under Solvency II
The Federation of European Risk Management Associations (FERMA) welcomed the European Parliament vote to agree the vast majority of special amendments regarding the status of captives under the Solvency II directive.
Thierry van Santen, FERMA Director with responsibility for European affairs, stated:
‘Thanks to this vote, captives, under certain conditions, will not only benefit from a simplified solvency regime, but are also now officially recognised by European regulation as a specific risk financing instrument, useful for European industry.
‘This is a great victory for the FERMA members. The Solvency II Directive originally had the same treatment for all types of insurance and reinsurance companies. It was FERMA who brought the captive issue to attention of the European Commission more than one year ago and then to the regulators through the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the European Parliament rapporteur.
‘This vote of the European Parliament was a critical step. We have now good reasons to anticipate an endorsement from the European Council of the text as it is.
‘But the game is not over. We have now to work with CEIOPS on the implementation phase. Thanks to the 100 captives companies who responded positively to the FERMA’s call to participate on the fourth quantitative impact study for Solvency II (QIS4), we are in a strong position to work closely with the CEIOPS on the implementation details. Those who attended the FERMA seminar last week in Brussels have seen the high level of positive cooperation that FERMA has with CEIOPS and the European Commission, and we are quite confident about the final outcome.
‘I would like to thank Florence Bindelle, the executive manager of FERMA, and Guy Soussan, from STEPTOE, our legal advisors on European affairs, as well as the captive management associations who give us a significant support in this process.’