Capital rules will coincide with company annual accounts
European Union (EU) commissioner for financial services Michel Barnier will delay Solvency II capital rules for the insurance sector by two months to the start of 2013, Reuters reports.
"I believe it worthwhile to time the date of entry into force of Solvency II to coincide with the usual end of the financial year," he said in the text of a speech in Brussels.
The new date would match that for the closing of accounts for most insurance companies in Europe, Barnier said. "We do not seek excessive prudence, but necessary and sufficient prudence," Barnier said of the rules, which should protect consumers while keeping industry competitive.
"We do not expect the entire European insurance industry to increase their capital by virtue of the changeover to Solvency II," he added.
Reuters produced the following timetable:
- 20 May - Commission consultations with industry and supervisors on the specifications for QIS 5 ends
- 1 July - Commission publishes QIS 5 technical specifications
- August-November - Insurance companies, including multi-national groups, run QIS 5 tests and give results to their national supervisors
- Autumn 2010 - Commission presents proposed implementing measures for Solvency II
- 31 December, 2012 - Date on which European Commission proposes Solvency II enter into force, to align with the closing date for accounts at most European insurance companies. Also the deadline for EU member states to have transformed the Solvency II Directive into national law.
