Drafting, re-drafting and delay
Solvency II has emerged as a piece of regulation through various twists and turns over the past nine years. Consultation, drafting, lobbying, re-drafting and delays are the substance of the EU-wide project, as insurers and regulators seek to make the law as robust and effective as it can be.
The UK industry has largely been on the front foot since the beginning, and has been a vocal and dynamic force in helping to shape the rules. However, with the regulation set to be introduced across all 27 EU member states, including accession states like Bulgaria and Romania, the path to implementation has not always run smoothly.
The latest delay (mooted in a June 2011 update to Omnibus II, a directive introduced at the start of the year to amend several pieces of financial services legislation) could push implementation back by a year or more.
The suggestion is not particularly welcome to UK Solvency II project managers, who have all their resource and planning focused on the January 2013 deadline.
In a recent poll at Lloyd’s, 90% of the market voted to press ahead on the current timetable. Lloyd’s said that a delay at this point would be demotivating, add to costs, and provide ongoing distraction from business as usual.
To read the full timeline, click on the pdf link, right.