"The archetype of what a rule-making process should not be like". This is how industry representatives typically refer to the drawn-out political negotiations around Solvency II – and with good reason. It took regulators almost 15 years to get the regulatory regime off the ground. This is a timeline of the process, with links to the key legislative texts, reports and missives. For a short history of Solvency II read "The twists and turns of Solvency II negotiations"
1997
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April 1997 - Mueller report
2001
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May 2001 - European Commission (EC) launches Solvency II process
Described as a fundamental review of existing insurance regulations.
2002
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May 2002 - KPMG report
Report recommends adoption of three pillar structure, which applied in the banking sector.
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Dec 2002 - Sharma report
ISC report concludes that failure of insurers cannot be ascribed to single cause and recommends that new solvency framework integrates regulatory capital assessment in a wider risk management process.
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2002 - Solvency I directives
Directives amending life and non-life regulations come into force.
2003
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Dec 2003 - Montalvo report
2004
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14 July 2004 - First wave of calls for advice
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Nov 2004 - Van Hulle appointment
Karel Van Hulle is appointed as head of the insurance and pensions unit of the EC.
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23 Dec 2004 - Second wave of calls for advice
2005
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29 April 2005 - Third wave of calls for advice
2006
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17 Mar 2006 - QIS1 report
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26 Oct 2006 - QIS2 report
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Nov 2006 - Proposal on group supervision
UK government/Financial Services Authority (FSA) publishes research paper on group supervision.
2007
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10 July 2007 - EC adopts Solvency II
Consolidates 14 directives regulating insurance. Planned implementation date is 31 October 2012.
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Nov 2007 - QIS3
2008
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25 Nov 2008 - CRO Forum paper on addressing the pro-cyclical nature of Solvency II
CRO Forum proposes shadow solvency capital requirement (SCR), whereby threshold for regulatory intervention could be reduced in times of stress.
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Nov 2008 - QIS4 report
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Dec 2008 - Economic and Financial Affairs Council (Ecofin) removes group support
Provisions for group support removed from the text after discussions led by French presidency. Equity dampener introduced.
2009
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19 Mar 2009 - 'Lessons from the crisis'
Ceiops' paper recommends adoption of Solvency II as response to the financial crisis.
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26 Mar 2009 - Trialogue agreement on Solvency II
Council and European Parliament (EP) agree to return to the issue of group support "in several years' time".
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22 April 2009 - EP Solvency II vote
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25 Nov 2009 - Solvency II
2010
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1 Mar 2010 - Liquidity premium report
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5 July 2010 - QIS5 tech specs
EC publishes final technical specifications for QIS5. Significant departure from Ceiops recommendations on illiquidity premium.
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24 Nov 2010 - Level II consultation
2011
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1 Jan 2011 - Eiopa comes to life
European Insurance and Occupational Pensions Authority (Eiopa) replaces Ceiops.
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19 Jan 2011 - Commission adopts Omnibus II
Amends the Solvency II Framework Directive to bring it into line with the Lisbon Treaty and the EU's new supervisory structure.
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9 Feb 2011 - FSA's Hector Sants speech
Chairman of the UK FSA says: "Going forward, the FSA and successor authorities will thus essentially be a supervisory arm of an EU policy setting body".
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14 Mar 2011 - QIS5 report
Report points to fall in industry's capital surplus of €86bn (44%) relative to Solvency I. Impact could be reduced to 1% with internal model and transitionals.
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28 March 2011 - Presidency of the European Council releases first compromise text
Proposes significant changes to the timetable for submission of draft technical standards.
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14 April 2011 - 2nd compromise text
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28 Apr 2011 - CRO Forum on liquidity premium
Paper sets out proposal for a practical implementation of liquidity premium.
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7 June 2011 - 3rd compromise text
With a focus on transitional measures.
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21 June 2011 - 4th compromise text
Calls for one-year delay in the Solvency II timeframe, in addition to the two-month delay proposed in an earlier draft. Proposed date of implementation is Jan 2014.
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4 July 2011 - 5th compromise text
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15 July 2011 - 6th compromise text
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27 July 2011 - EP publishes draft report on Omnibus II
Proposes amendments in the following areas: duration of transitional measures; liquidity premium; third-country equivalence; reporting requirements; minimum capital requirements.
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21 Sept 2011 - 7th compromise text
Fails to incorporate suggestions from EP.
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16 Nov 2011 - Eiopa conference
Carlos Montalvo rules out QIS6 in speech.
2012
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12 Feb 2012 - Expert hearing at EP
Parliament holds hearing in Strasbourg to discuss the matching premium. Experts and academics warn about shortcomings of existing proposal. Alternatives include a temporary lowering of the SCR and extended transition period.
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28 Mar 2012 - EP Economic and Monetary Affairs Committee (Econ) report
Rapporteur Balz publishes second report on Omnibus II, clearing the way for trialogue discussions.
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13 July 2012 - Deadlock
Trialogue discussions fail to deliver after seven sessions, amid disagreements over the treatment of long-term guarantee (LTG) products.
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14 Sep 2012 - 1st quick fix directive
Directive pushes back application date to 1 January 2014, from 1 November 2012, and transposition date 30 June 2013, from 31 October 2012.
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18 Sep 2012 - Trialogue discussions on long-term guarantee assessment (LTGA)
EP forces ex-ante assessment of LTG package, but there is no agreement on terms of study.
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4 Oct 2012 - Bernardino's letter
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1 Nov 2012 - L&G's Wilson casts doubt over Solvency II timeline
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9 Nov 2012 - Trialogue on LTGA
Ex-ante assessment agreed.
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15 Nov 2012 - Eiopa's interim solution
Discussion at the Board of Supervisors about the legal basis for an "interim solution".
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21 Nov 2012 - Eiopa conference
Van Hulle rejects postponement of Solvency II pillar I: "over my dead body".
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12 Dec 2012 - Letter from Burkhard Balz to EC on LTGA
Finds terms of reference for the study "acceptable".
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19 Dec 2012 - Letter from Jonathan Faull to Eiopa
Letter from director general asking Eiopa to conduct LTGA and report by 14 June.
2013
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25 Jan 2013 - Launch of LTGA
Eiopa publishes tech specs of LTGA. Firms have until 31 March to submit figures.
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18 March 2013 - Wiedner's appointment
Klaus Wiedner replaces Karel Van Hulle as head of the EC's insurance and pension unit.
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26 March 2013 - Consultation on preparatory guidelines
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14 June 2013 - LTGA report
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10 Sept 2013 - Trialogue meeting
Member states ask for more lenient calibrations.
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27 Sept 2013 - Preparatory guidelines
Eiopa publishes final version of preparatory guidelines covering pillars II and III.
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2 Oct 2013 - 2nd quick fix directive
Commission adopts directive to change application date to 1 Jan 2016.
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24 Oct 2013 - Trialogue meeting
Expected to be the final one, was cut short.
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13 Nov 2013 - Final trialogue - provisional agreement on Omnibus II
Trialogue discussions lasted for 8 hours. Sharon Bowles tweets: "Omnibus 2. Long term guarantees 65, 16, 30/35, parallel adjustment, asset replacement, capital add on and liquidity. Provisional equivalence".
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19 Dec 2013 - Report on charges on long-term investments
Eiopa issues report on the capital treatment of long-term investments.
2014
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28 Jan 2014 Draft delegated act
Meeting of the EC expert group on insurance to discuss first draft delegated act.
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11 Mar 2014 EP vote on Omnibus II
Parliament approves Omnibus II directive. The vote went 560-133 in favour.
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14 Mar 2014 Draft delegated act
Second draft circulated.
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10 Oct 2014 Commission adopts delegated act
Text of the delegated act includes last-minute changes to securitisation charges.
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19 Dec 2014 Letter from Parliament on equivalence
Roberto Gualtieri writes letter to Commissioner Hill. Requests separate delegated acts for equivalence decisions. Mandates Commission to start assessment of high-quality infrastructure investments.
2015
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17 Jan 2015 - Publication of delegated acts
Delegated legislation published in the official journal. Automatically becomes EU law.
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2 Feb 2015 - 1st set of guidelines
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19 March 2015 - Commission adopts first set of implementation regulations
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16 May 2015 - Berger's appointment
Nathalie Berger replaces Klaus Wiedner as head of the EC's Insurance and Pensions Unit.
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5 June 2015 - Equivalence decisions
Commissions proposes Switzerland be considered fully equivalence.
Australia, Bermuda, Brazil, Canada, Mexico and the US deemed provisionally equivalent.
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2 July 2015 - Consultation on infrastructure investments
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1 Sept 2015 - Guersent's appointment
Olivier Guersent replaces Jonathan Faull as director general of the EC's Financial Stability, Financial Services and Capital Markets Union Directorate General.
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14 Sept 2015 - 2nd set of guidelines
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30 Sept 2015 - Amendment to delegated act
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9 Oct 2015 - UFR announcement
Eiopa to review methodology to calculate ultimate forward rate (UFR) by Sept 2016.
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19 Nov 2015 - Call for evidence on infra corporates
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26 Nov 2015 - Equivalence decisions on Bermuda and Japan
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7 Dec 2015 - Fundamental spread formula amended
Eiopa amends the formula to calculate the fundamental spread, to avoid double counting issues.
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16 Dec 2015 - EP confirms re-appointment of Bernardino
EP votes on the appointment of Gabriel Bernardino for a second five-year term as chairman of Eiopa.
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1 Jan 2016 - Solvency II goes live