Political agreement on legislation that underpins the new Solvency II system (the Omnibus II Directive) might not be reached until an impact study has been finished.
The impact study, concerned with how Solvency II might impact on long term investments and and the risks of long term guarantees offered by insurers, won’t be finalised until March 2013.
Insurance Europe, a representative of insurance and reinsurance associations all over Europe, has responded to these proposals, saying ‘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.’
Insurance companies are currently required to meet Solvency II requirements from the beginning of 2014. In the light of these delays, it’s unclear what the final timetable for Solvency II will be.