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But the delay will allow the results of the current study on the impact of Solvency II on products with long-term guarantees to be properly considered. The study was launched last month. The European Insurance and Occupational Pensions Authority (EIOPA) was due to provide its findings by 14 June, 2013.
Peter Ott, European Head of Solvency II at KPMG, said this week: "Whilst we have been expecting for some time that a delay would be inevitable, it is disappointing that the opportunity has not been taken to provide a clear timetable for the remaining process to make Solvency II a reality". He added that discussions about whether the Directive will ever become a reality in its current form are becoming more intense. "A clear timetable is needed on the remaining steps to industry compliance", he said.
Janine Hawes, Insurance Director at KPMG, added: "Yesterday's rescheduled plenary vote means that a second 'quick fix' Directive will need to be put in place quickly, as the transposition of Solvency II into national legislation by 30 June, 2013 is clearly impossible".
She added that the latest reshuffle will amend both transposition and implementation dates and will therefore end the speculation around the actual implementation date. "Given the process that will be required to put the level 2 and 3 requirements in place once Omnibus 2 is finally enacted, we are working on the assumption that industry compliance will be moved to 1 January, 2016", said Ms Hawes. "The focus is heavily on the pillar 2 requirements of Solvency II such as governance, risk management and ORSA principles, so insurers should continue to further develop and stabilise these areas throughout this year", advised Ms Hawes.