Parliament will not vote on the final Solvency II text until after the summer recess
Insurers are being left “in limbo” by delays to the Solvency II regulations, the ABI has warned.
The association said the failure of the European Commission, European parliament and the Council of the European Union to agree on the final version added to the uncertainty.
The rules, forcing insurers to hold more capital to cover their risks, are due to be fully implemented by insurers by 1 January 2014. That deadline may now have to be scrapped.
ABI director of prudential regulation Hugh Savill said: “This delay was not caused or asked for by industry, which is keen to see the Solvency II issues resolved. This result raises questions about the timetable for Solvency II and will leave insurers in limbo until an agreement is reached.”
The ABI has lobbied for a “matching adjustment” to remove the requirement for insurers’ capital holdings to take account of market volatility they are not exposed to.
Parliament will now not be able to vote on the final Solvency II text until October at the earliest.