The deadline for Solvency II implementation is likely to be pushed back once again, given the timeframe that has been allocated for the long-term guarantees assessment impact study, according to accountants familiar with the process.
The study will test the application of Solvency II to products that have long-term guarantees attached to them. While predominantly a life assurance issue, this could also affect general insurance products that have similar features.
However, it is unlikely that the study will herald any clear solutions to the issues and this could cause delays.“If there is not a clear cut solution on the table when the report is published, then it is likely that the trilogue process will have to continue until a solution is reached. This will have implications for the whole timeline,” said Janine Hawes, insurance director at KPMG.
The long-term guarantees assessment impact study, which was launched on January 28, requires companies to submit responses to their national supervisory authority. These authorities then need to collate those responses, and check them before submitting their own country responses, which are then collated by the European Insurance and Occupational Pensions Authority (EIOPA).
Given that there is a nine week deadline, this will put a lot of pressure on resources for those insurers that are participating, according to Peter Ott, European head of Solvency II at KPMG.“Given the delays in issuing the full specifications, significant time will be spent in the first few weeks assessing the detail required before the numerical assessment can even commence,” he said.
Solvency II, Delays, EIOPA, KPMG