Insurers facing pressure over last-minute Solvency II requirements
Last minute requirements being imposed in the run-up to the implementation of Solvency II are causing a great deal of concern for European insurers.
This is according to a survey by European re/insurance federation Insurance Europe, which covered companies that account for 90 percent of European insurance premiums.
A number of respondents were concerned that the final version of the Quantitative Reporting Templates (QRTs), which insurers need to comply with the third pillar of Solvency II, will only be adopted by the European Commission in September. This is only four months ahead of when the new regime comes into force.
Other concerns of Solvency II include the fact that most national supervisors intend to fully comply with approximately 700 guidelines issued by the European Insurance and Occupational Pensions Authority (EIOPA), often on its own initiative.
This will add around 1100 pages to Solvency II, increasing the implementation burden for insurers.
However, the survey found that most insurers were making good progress in implementing the first two pillars of Solvency II.
Additionally, the majority of insurers felt that risk management and governance have already been improved as a result of the introduction of the new regime.
Igotz Aubin, head of prudential regulation at Insurance Europe, said: “It is extremely encouraging to see that Europe’s insurers have made such substantial progress in their journey towards implementing Solvency II, especially given that this task has been completed during a particularly challenging time for the industry. However, this survey has also revealed a number of serious issues that need to be acknowledged.
“While the industry shares the aims of Solvency II, policymakers and supervisors must also appreciate the significant burden which its implementation is placing on insurers. EIOPA and local supervisors should, therefore, avoid imposing last minute requirements and interpretations which add to that obligation.”
