The study will test how Solvency II capital requirements work in practice

The final dry run for the implementation of the Solvency II directive begins next week as the European Commission launches consultation on its draft Quantitative Impact Study (QIS) 5.

Insurance Times has learnt that the draft QIS5, which tests how the proposed capital-setting requirements will work in practice, is being circulated to trade bodies and key insurers later this week.

The study is the last in a series of five ‘field tests’ to feed into the final version of the measures for implementing Solvency II, due to be published later this year.

Last week, Ceiops (the Committee of European Insurance and Occupational Pensions Supervisors) issued its final advice on implementing level two of the insurance directive.

Ceiops chair Gabriel Bernardino said insurers’ capital requirements would rise but not by as much as anticipated. PricewaterhouseCoopers Solvency II partner Jim Bichard said: “It’s still going to be pretty painful.”