The European Commission's project to develop a Europe-wide risk-based solvency supervision framework is well advanced, with the draft Directive due to be put before the European Parliament in June 2007. The consultation exercise which has helped to shape the proposals has been wide ranging, and will continue for some time to come. Actuarial input into the proposals has been extensive. As well as the activity of individual actuaries, the Groupe Consultatif has a large team of volunteers spread across a number of working parties, and the United Kingdom Actuarial Profession has two U.K. working parties set up, respectively, by the General Insurance and the Life Boards.

While many aspects of the proposed framework have been well debated across Europe and the overall shape of the likely final outcome is reasonably well understood, a number of significant issues still remain. It is important that actuaries are aware of what might be in store, and what could be done now to help to prepare for the new regime.

On the eve of the start of the third round of Europe-wide test calculations (Quantitative Impact Study 3, or QIS3 for short), therefore, it is appropriate to hold a Panel Discussion to explore some of the key issues and possible implications. A Briefing Note follows this introduction.

The meeting takes the form of presentations by the three panel members, and the discussion follows.