Further delays could render January 2014 deadline ‘unrealistic’
Accounting firm PwC has stressed the importance of progress at today’s debate to determine key changes to Solvency II.
The three-way meeting, or trilogue, between the European Commission, European Parliament, and Council of the European Union, aims to hammer out an agreement on the contents of Omnibus II, a key package of changes to the Solvency II directive.
The three bodies failed to reach an agreement in a trilogue in July, prompting fears of further delays to the Europe-wide insurance capital directive, which has already been pushed back several times. It is now due to be implemented on 1 January 2014.
PwC’s global Solvency II leader Paul Clarke said: “Key policymakers in Brussels are re-convening in the hope to finalise a compromise which will allow Omnibus 2 to progress without further delay.
“Given all the time and effort that the industry and policymakers have invested in the Solvency II project, it is important to all those involved that a solution can be found.
“Clearly reaching this necessary compromise will have a substantial impact on the insurance industry. It is important to the credibility of the EU insurance industry as the eyes of the world are watching to see what will happen over the next few months.”
PwC regulatory insurance partner Jim Bichard added: “The insurance market is keen to see certainty and finality in the Solvency II project.
“Over the next few weeks it is hoped that the necessary parties can come to an agreement on the remaining contentious issues which will allow the market to implement Solvency II at the beginning of 2014.
“Further implementation delays will no doubt be a source of frustration for those in the market whose compliance programmes to address the new regulatory framework are well underway – especially the larger insurers and Lloyd’s market.
“If there is a substantial delay, there is a risk that already agreed topics in the directive could be re-opened making completion even harder and the implementation deadline even more unrealistic.”
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