The odds Solvency II will not bite until 2014 have increased following the publication by the European Parliament of a new draft timetable for implementing the directive.
Burkhard Balz, a member of the Parliament’s Committee of Economic and Monetary Affairs, has submitted a report outlining the new dates for putting the directive into force.
Under the new timetable, which accords with that proposed by the Council of Ministers, the directive will be phased in during 2013.
Solvency II was originally due to be implemented at the beginning of 2013, but has been delayed due t lack of preparedness on the part of many smaller insurers and member states’ regulators.
The report says: “The rapporteur has no intention to postpone the transposition date for the Solvency II project. A smooth transition of the Solvency II requirements, however, seems to be reasonable, not only for small and medium-sized undertakings, but also for the preparedness of supervising authorities.
“For this reason, the rapporteur proposes a phasing-in within 2013, which already provides for approval procedures and, beginning July 2013, for important supervisory information.
“Between 1 January 2013 and 31 December 2013 insurance and reinsurance undertakings and supervisors shall take all measures necessary to comply as of 1 January 2014 with the national laws, regulations and administrative provisions implementing this Directive.”
Commenting on the report, PWC global Solvency II leader Paul Clarke said: “This is a positive development as it brings us closer to ending the distracting debate over whether there will be a delay. Despite the delay in start date, the reality is insurers cannot afford to be complacent with their plans as they will still be required to file Solvency II information over the course of 2013 to prove their readiness. This means insurers will need to have the appropriate systems and processes in place by the end of next year.
“The industry is likely to welcome the Parliament and Council’s consensus on pushing back the implementation date to 2014, especially as a lot of the technical detail is still to be finalised. The more crucial piece for the industry now is how the areas of disagreement on some of the Level 2 implementing measures are resolved. We are unlikely to get any clarity on this until autumn and the rules won’t be finalised until well into 2012.”
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