In the context of the development of the Solvency II project, CEIOPS is committed to provide the European Commission with a series of technical advices in response to its requests covering all the aspects of the future prudential supervision for insurance undertakings, including group and cross-sectoral issues. These requests are in line with the rule-making process which the European Parliament and the Council adopted under the proposed extension of the "Lamfalussy process".

CEIOPS has already submitted its answers to three waves of Calls for Advice to the European Commission. In its letter of 24 January 2006 the European Commission requested further advice (“post-third wave”) on key aspects of CEIOPS’ Advice which were not fully elaborated and/or defined and thus require additional input.

In line with this request CEIOPS released for public consultation its Consultation Paper No. 13 “Draft Advice to the European Commission in the framework of the Solvency II project on insurance undertakings’ Internal Risk and Capital Asessment requirements, supervisors’ evaluation procedures and harmonised supervisors’ powers and tools “and Consultation Paper No. 14 “Draft Advice to the European Commission in the framework of the Solvency II project on sub group supervision, diversification effects, cooperation with third countries and issues related to the MCR and the SCR”.

In addition CEIOPS is working on further consultation papers covering key Pillar I aspects such as technical provisions, capital requirements, risk mitigation tools and eligible elements to cover capital requirements as well as Pillar II issues such as reinsurance, safety measures (limits on assets and diversification requirements) and internal model – use test.

CEIOPS held a public hearing on 07 September 2006, in addition to the procedure for written public consultation that is open till 12 September 2006. The aim of this public hearing is to give all stakeholders the opportunity of direct dialogue with CEIOPS' representatives in commenting on Consultation Papers Nos. 13 and 14, as well as other outstanding issues of the Solvency II project, especially in the light of the short written consultation period which is set for these Consultation Papers. CEIOPS will take into consideration all useful input in any revision of the drafts as well as in developing further work.