Harmonising insurance legislation with the Solvency 2 Directive has two objectives: consumer protection and improving the work of the very insurance sector. The transition to Solvency 2 represents a significant technical and practical challenge for the sector, since the Directive sets standards for:
- measuring and monitoring capital adequacy for insurance companies (in order to ensure payments to the insured);
- risk-based supervision of the insurance sector (which implies that the risks of insurance companies need to be assessed as accurately as possible, so that the supervisor, i.e. the National Bank of Serbia, can respond as quickly as possible to protect consumers);
- the system of governance and reporting standards of the insurance companies towards the supervisor, as well as tasks and responsibilities of insurance supervisor and their reporting to the public.
Between April and July 2017, the PLAC II project expert, Mojca Piškuric provided assistance to the National Bank of Serbia in the development of the Draft Methodology for quantitative impact study (QIS) of Solvency II requirements, and the proposal of the tool for data entry for QIS implementation. In order to prepare employees of the National Bank of Serbia for the new legislation and help them fully understand its impact, she also conducted the training for implementation of the quantitative impact study. In line with Serbia’s EU accession process, Solvency II will be implemented in stages.
