UK QIS exercise identified commercial insurers, reinsurers and monoline firms most likely to see increase in capital requirements

The UK’s participation in Ceiops’ QIS 2 has revealed where the winners and losers will be under the Solvency II regime. The conclusions are tentative, given that QIS 2 was more about the methodology and less about calibrations, but the Financial Services Authority, which organised UK firms participating in the EU-wide study, said some sectors of the insurance market were showing signs of “significant financial impact” on applying the QIS 2 specifications.