General Insurance Article - Solvency II delay - UK still ahead of the curve

 “Following last week’s stalled negotiations; many in the insurance industry think it likely that the Solvency II timetable will be further delayed, throwing insurers into limbo. The initial feeling amongst firms will be frustration, having spent a lot of time and money on adapting their technology systems for the directive. However, British insurers should take comfort in the fact that the UK remains ahead of its European counterparts with the London market leading the way for meeting the current deadline.

 Having introduced compliance systems early and within the deadline, London’s market will have a soft start, being able to ensure that they are compliant before enforcement comes into play. Firms will also be able to have all of their processes tried and tested to avoid any setbacks when implementation does arrive. In addition, other markets, such as Bermuda, are also currently moving to enforce similar measures so meeting the regulatory requirements is now a global necessity.

 The UK is blazing a trail on Solvency II, highlighting London’s position and ambition as a global insurance hub. The London market has a strong technological advantage, occupying a leading position globally when it comes to electronic platforms and agile IT solutions that accommodate different geographic needs. Lloyd’s of London also has a unique position at the centre of a larger business network with access to a vast talent pool with a wealth of experience and a dynamic IT industry on its doorstep. It is for this reason that Lloyd’s launched its ‘Vision 2025’ plan to help secure London’s future as the world’s insurance centre. Delay or no delay, London should press ahead with its plan to lead the way for the insurance industry.”