Solvency II implementation date pushed back to 2013

The implementation date for Solvency II has been confirmed as 31 December, 2012.

The previous implementation date was 1 November, 2012.

Confirmation came through the publication of the European Commission’s Omnibus II - a document interwoven into the Solvency II regulation.

Omnibus II gives the European Commission to fast-track changes to some areas of insurance supervision and regulation without the need to go the European Parliament.

But PricewaterhouseCoopers is concerned the new date will add further stress to insurers complex plans.

Charles Gamsworthy, PwC insurance partner, said: “Companies will need to understand the full impacts of Omnibus II for their Solvency II projects and effective early analysis could bring competitive advantages.”

Omnibus II has also allowed for transitional arrangements, giving insurers movement in certain areas. “The European Commission and EIOPA have clearly recognised the need for transitional arrangements in a number of key areas such as equivalence, valuation, governance and supervisory reporting and public disclosure,” said Gamsworthy.

“It was unrealistic to expect the estimated 3,600 insurers who fall under Solvency II’s scope to be 100 percent compliant by 1 January 2013 and the introduction of these transitional measures will allow insurers and regulators time to fully comply with the directive,” Gamsworthy continued.

“It will also open up the possibility of the regulatory regimes of a country such as the US, that does not fully satisfy all the requirements but yet still has a reputable regime, being recognised under the Solvency II directive,” he added.