Existing solvency requirements will continue to apply until January 2014, according to an EU proposal

EU member states have agreed a proposal that delays the implementation of Solvency II until January 1 2014, as opposed to the same day in 2013, according to the Insurance Times.

This proposal is known as the Presidency Compromise and stipulates that Solvency II’s legal requirements be transposed into law by 31 March 2013. Supervisors will require insurers to provide an implementation plan for Solvency II by July 2013.

Under the proposal, Solvency I will not be repealed until January 2014, which means that existing solvency requirements will continue to apply until then.

On June 27 Aon Benfield reported that 60% of insurers at one of its conferences think that 2014 is a better starting date for Solvency II.

By staggering the introduction of Solvency II the European authorities would give extra time for national legislation to be passed and for insurers to prepare themselves.