Lloyd's warns that 2012 deadline is 'not that far away'

Lloyd’s insurer Hardy has set aside a £3m budget for the cost of implementing Solvency II, chief executive Barbara Merry said.

Merry, speaking at a briefing on market issues, said: “The budget is £1m for each of the next three years, because the consultants do not come cheap.”

Chief risk officer Anthony Williams said Hardy was contributing to one of the nine voluntary groups set up by Lloyd’s to help managing agents prepare for the 2012 deadline.

Lloyd’s Market Association’s head of finance and risk management, Pat Hakong, said managing agents had produced implementation plans before Christmas and were now preparing for the “dry run” starting in June. Managing agents should have a draft internal model in place before the dry run starts.

Hakong warned managing agents not to leave it too late. “For the agents that think we have plenty of time, I would say that’s not the case. 2012 is not that far away. The more you do now, the easier it will be in 2012.”