General Insurance Article - Further delay on Solvency II

 The timetable for Solvency II implementation could slip as the European Parliament's consideration of the proposed Omnibus 2 amendments was again delayed from mid-October to 20th November.

 Janine Hawes, insurance director at KPMG, comments "This delay comes as no huge surprise given the trilogue’s failure to reach agreement before the summer recess. However, the primary concern is the knock-on effect this could have on the Solvency II implementation date. There is still a long journey ahead to finalise the rules once Omnibus 2 is approved, as the level two and three requirements will need to be consistent with the amendments made.

 Official comments suggest that the regulators are still aiming for a Solvency II implementation date of 1 January 2014. However, it is becoming increasingly unrealistic to expect all insurers to be able to achieve this, especially as the final requirements for the determination of insurance liabilities remains unclear.

 Companies need the certainty of having final rules in order to properly prepare for the new requirements. At the moment, there simply isn't enough time for everyone to do this properly.

 “A clear indicative timetable for all the remaining steps required in adopting Solvency II is urgently needed-rather than the continuing drip feed of delays we continue to see.”