On July 13, 2012, the European Insurance and Occupational Pensions Authority (EIOPA) published its final report on the public consultation on the draft Level 3 guidelines for the Own Risk and Solvency Assessment (ORSA) under Solvency II. This report sets out a detailed breakdown of all the comments received during the consultation together with EIOPA’s opinion on the main comments and its expectations of how insurers will implement the ORSA.

An updated version of the Level 3 text is included in Annex II to the report. While the published guidelines in this text are still in draft form, and may be subject to further changes as the eventual form of Solvency II is finalized, EIOPA has commented that it "strongly encourages the industry to use the current report in their early implementation of the ORSA.”

This Solvency II update contains a short summary of the content of the EIOPA report and a brief analysis of what these proposals may mean both for companies and Solvency II in general.