Netherlands: Solvency II Update

This alert addresses significant recent European developments regarding Solvency II.

The Solvency II Directive ("Solvency II") aims to create a level playing field for the European insurance industry and signals a move towards a risk-based supervisory system. This alert addresses significant recent European developments regarding Solvency II.

Application date to be postponed

The current date of application for Solvency II is 1 January 2014. It had been anticipated widely for quite some time that application as per this date would not be feasible. In formal acknowledgement of this fact, the European Commission proposed a Directive on 2 October 2013 to postpone the application date to 1 January 2016. It is highly likely that this proposed Directive will be adopted.

Final Guidelines published

As postponement of the application date of Solvency II had been anticipated, the European Insurance and Occupational Pensions Authority ("EIOPA") has sought another way to ensure that the insurance industry does not lose the momentum and keeps preparing for Solvency II: EIOPA has drafted Guidelines for the preparation of Solvency II. A consultation on the draft Guidelines was held from 27 March through 19 June 2013 and the final version of the Guidelines was published on 27 September 2013. You can find the Guidelines here. The Guidelines concern the following topics:

  • System of Governance
  • Forward Looking Assessment of Own Risks (based on ORSA principles)
  • Submission of Information to National Competent Authorities ("NCAs")
  • Pre-application for Internal Models

The Guidelines will apply as of 1 January 2014. As the Guidelines only prepare for the application of Solvency II, the current regulatory regime will stay in place until Solvency II comes into effect.

The Guidelines aim to ensure that NCAs, insurance undertakings and groups implement key elements of Solvency II in a consistent and convergent way. They are directed at NCAs which must indicate whether they already, or intend to, comply with the Guidelines. Even though the Guidelines are not addressed to insurance undertakings directly, obviously the Guidelines will affect them as NCAs are expected to ensure that insurance undertakings take steps to prepare for Solvency II in line with the Guidelines.

As a result of the consultation, EIOPA has made a number of changes to the Guidelines. It notes the following changes as the most important.

  • System of Governance
    During the preparatory phase, the actuarial function should focus on data and methodologies, rather than on valuation of technical provisions. The framework for the valuation of technical provisions is still unclear as it is linked to the Omnibus II Directive ("OMDII"), for which negotiations are on-going.
  • Forward Looking Assessment of Own Risks (based on ORSA principles)
    The assessments of a) the continuous compliance with the Solvency Capital Requirement ("SCR") and technical provisions and b) significance of the deviation of the risk profile from the assumptions underlying the SCR will be postponed to await the Pillar I technical specifications reflecting the OMDII agreement.
  • Submission of Information to NCAs

    • Group solvency calculation methods: To prevent pre-empting future decisions on equivalence or on consolidation methods, EIOPA will enable a group to decide which method it would apply during the preparatory phase for the calculation of its group solvency with regard to third country undertakings. The group should make its decision after having considered the outcome of a dialogue with the group supervisor on the method of calculation.
    • No submission of information for Q4 2015: EIOPA considers the submission of one quarter (Q3) as sufficient for the preparation for Solvency II. In the draft Guidelines, preparation of a submission for Q4 was also required. EIOPA stresses the importance of insurance undertakings and groups preparing for the quarterly submission of information within the deadlines that will apply to them under Solvency II. It therefore does not allow an extension of the quarterly reporting deadline.
    • Extended reporting deadlines for annual reporting: The annual reporting deadline during the preparatory phase will be extended by two weeks. Therefore the solo submission of information to NCAs needs to be completed 22 weeks after year end and the group submission 28 weeks after year end.
    • Proportionality and simplifications in reporting: Regarding assessments of materiality, EIOPA acknowledges that with respect to quarterly reporting of the balance sheet (except for technical provisions) quarterly measurements may need to rely on estimates and estimation methods more so than on measurements of annual financial data. However, EIOPA notes that the measurement procedures have to be designed to ensure that the resulting information is reliable and complies with the Solvency II standards and that all material information that is relevant for the understanding of the data is reported. With respect to the calculation of the technical provisions, EIOPA will allow undertakings to rely on simplified methods in the calculation of the risk margin and best estimate (as elaborated on in the Guidelines).
  • Pre-application for Internal Models
    EIOPA allows insurance undertakings engaged in a pre-application process for Internal Models to agree with their NCAs the submission related to the standard formula and its level of detail. The draft Guidelines required insurance undertakings engaged in such pre-application process to submit both internal model and standard formula forms.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions