Key Solvency II vote put back to April

The industry will be in the dark about the final shape of Solvency II for another four months following news from the European Parliament that a key vote on the directive has been delayed until April.

An update from the European Parliament this morning has revealed that the Omnibus II directive, which needs to be approved before Solvency II can be implemented, has been further delayed with Strasbourg not due to vote on the final rules until April 2012.

Until this framework is agreed, finalisation of more detailed guidance critical to implementation may be pushed back.

KPMG Solvency II technical group director Janine Hawes said: “This is another blow to the insurance industry, significantly shrinking the timeframe between final rules being issued and the industry having to comply. These latest delays mean the industry will be forced to spend another four months in the dark and in many respects defeats the purpose of the 12 month implementation delay.

“Again, insurers are facing looming deadlines without sufficient time to get their heads around the final rules.  Solvency II on its own is a huge undertaking for insurers and the fact that deadlines have kept slipping has further complicated matters. Regulators have been unable to provide certainty and the lack of guidance is a huge problem. The industry has been crying out for clarity on critical technical issues, such as matching and counter cyclical premiums. These latest delays make it seem no one is listening.”