Terms of Reference

Purpose and Remit

The purpose of the ISG is to inform and help the FSA input into Solvency 2 policy negotiations before consultation.  It does not replace domestic or European consultation so may not definitively resolve any matters discussed. 

Although the primary focus of the ISG is on Solvency 2, it may also used be as a forum to raise ad-hoc domestic insurance issues that the FSA wishes to pre-consult with the industry on.

ISG membership is limited to the Association of British Insurers (ABI) and certain other trade bodies as well as a number of firms by invitation. ISG subgroups are 'open' fora for firms, trade bodies and consultants.

Responsibilities: FSA

The FSA will:

  • ensure Solvency 2 issues raised by firms are given proper consideration through discussion at an appropriate level within the FSA, and that appropriate action is taken to address them;
  • share with the ISG members its Solvency 2 policy proposals and rationale;
  • highlight and discuss Solvency 2 implementation issues;
  • ensure that firms' views on policy options are factored into the FSA's on-going discussions on Solvency 2 in CEIOPS; and

Five working days before an ISG meeting, the FSA will:

  • supply ISG members with a meeting agenda;
  • provide papers explaining Solvency 2 policy and implementation issues that the FSA is seeking to resolve and, where appropriate, proposed solutions to them.

Five working days after an ISG meeting, the FSA will:

  • circulate minutes from the meeting, comprising action points for the FSA and ISG members where necessary;

Ten working days after an ISG meeting, the FSA will:

  • publish on its website the final version of the ISG minutes.

Responsibilities: ISG members

The ISG members are responsible for:

  • providing views on the appropriateness, and practicality, of the FSA's proposed solutions to Solvency 2 policy issues;
  • where proposals are considered inappropriate or impractical, offering alternative solutions to Solvency 2 policy issues to inform the FSA’s discussions through CEIOPS;
  • assisting the FSA in assessing the overall cost and benefits for UK firms of implementing Solvency 2 policy proposals.

Meeting frequency

ISG meetings will be held every two months and ad hoc meetings may be held where necessary.

Circulation of ISG papers

ISG members are free to circulate papers within their organisations and, in the case of trade associations, around trade association members to gauge industry views.

Composition

The ISG will be chaired by Janne Lipponen of the FSA.  Policy Advisers, Supervisors and others working on Solvency 2 within the FSA will also attend.

Industry participants will be drawn from non-life and life insurers, reinsurers, friendly societies, Lloyd's/IUA, and trade associations.

Disclaimer

The papers and meetings of the group are intended to enhance continued discussion of the topics rather than to present a comprehensive account of the issues or a set of agreed conclusions. The minutes of the meetings report the discussions of the group, but neither the papers or minutes nor any reported remarks by anyone present at one of those meetings should be seen as representing either the formal positions of the member institutions or of the FSA. The FSA's policy proposals will be subject to consultation in the normal way.