European Commission asked to review timetable for Solvency II to gauge impact on insurers and reinsurers
European Commissioner Michel Barnier has proposed to halt discussions over the implementation of Solvency II until a new study can be undertaken to ascertain its impact on insurers and reinsurers.
It is alleged that talks between European member states and the European Parliament have broken down, leading Barnier, who is responsible for the implementation of the Solvency II regulatory rules, to propose that the European Insurance and Occupational Pensions Authority studies the potential impact of the rules.
European insurance and reinsurance trade body Insurance Europe said the impact assessment was a good idea, but added: “It is regrettable that this may lead to a delay in the Solvency II process, but it is vital that the results of the tests can be reflected in Omnibus II in order to ensure that the new regulatory regime is both appropriate and workable.
“The decision to carry out the assessment shows that legislators have recognised that measures are needed to ensure that the Solvency II framework measures the real risks faced by insurance companies’ long-term business and does not create artificial volatility.”
Solvency II is currently due to be fully implemented in January 2014, however, the latest development means that implementation of the risk and capital management rules it comprises could be delayed by as much as another 12 months.
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