The much anticipated Solvency II directive may be closer to a definite implementation date¸ according to regulatory and policy officials.
Solvency II which was originally due to take effect in late 2012¸ was delayed in a bid to apply lessons arising from the financial crisis.
The process was further deferred when insurers in Germany¸ France and Britain called for greater leniency over how much capital should be set aside for products offering guaranteed returns.
Peter Skinner¸ a British member of the European Parliament¸ told Reuters “More has been understood about long-term guarantees so that a far more practical approach can therefore be implemented.” Although Skinner declined to say when the new rules would be implemented¸ regulators have indicated 2016 as a possibility.
Moreover some elements could be phased in¸ according to Skinner. “Transitions are one of the possibilities in the regulatory tool bag¸” he said.
EIOPA is scheduled to report on the issue in July.
To learn more about Solvency II¸ read EU to take global lead in insurance regulations