QIS4 for life insurers
What the draft technical specification means for life insurers
QIS4 will further consider the calibration of the standard formula which will be used by companies that do not have an internal model. It will also collect information on the status of internal models and on the
differences between internal model and standard formula results, in order to develop implementation measures and guidance on internal models. Group aggregation measures will be considered in detail.
Participation in QIS4 will afford companies the opportunity to influence the developing Solvency II regime, to gain an early indication of development work needed, and to obtain an estimate of how their solvency position may change under Solvency II. Results and feedback from QIS3 have influenced the QIS4 specification, for example, in the calculation of the MCR, lapse catastrophe, and operational risk requirements.
In this piece, we summarise the key differences between QSI3 and the draft specifications for QSI4 and other areas of importance.
For further information download our publication QSI4 under the microscope. (PDF, 99KB)