Telegraph: Solvency II delays 'are a major worry'

05 October 2012

Gabriel Bernardino, chairman of Europe's insurance watchdog, said "stagnation" in political talks meant there was still no clear timetable for the Solvency II framework, which is supposed to take effect in 2014.

The Solvency II rules are being designed to protect consumers by ensuring insurers hold reserves in proportion to the risks they underwrite. However, the regime has so far proved to be unpopular with companies such as Prudential and Legal & General. They have warned that the rules could impose “unfair” capital requirements on the industry and even force them to re-domicile outside the European Union.

[EIOPA head Gabriel Bernadino] warned that regulators across the Continent will be left using outdated rules if EU political institutions do not reach an agreement soon. “If we have to continue with (the current regime) there is a huge danger that supervisors will not be able to identify and analyse risks correctly and will not be able to take the necessary supervisory actions in time, which may have serious consequences for policyholder protection”, he said.

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