Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2012
05

Insurers 'sceptical Solvency II deadline will be met'

Open-access content Thursday 24th May 2012 — updated 5.13pm, Wednesday 29th April 2020

More than one in three insurance companies believe the industry will miss the January 1 2014 deadline for compliance with Solvency II, according to research published by Deloitte yesterday.

2

The consultancy's annual Solvency II survey found that 37% of respondents were 'somewhat' or 'very concerned' that companies will not meet the requirement of the new European capital and risk management rules, compared to 24% in last year's survey. This is despite the start date being pushed back a year from January 2013 last summer.

Rick Lester, lead Solvency II partner at Deloitte, said: 'The primary underlying cause for concern is the continued uncertainty around the detailed requirements of Solvency II and the fact that these are unlikely to be clarified until relatively close to the go-live date.

'This means there will be not much time for insurers and regulators to finalise their arrangements and approach with complete knowledge of the rules.'

Deloitte's survey of 60 UK-based insurers also found that 73% of respondents said the delay in implementation had cost them money. Almost half (42%) of those questioned said the delay had increased their original Solvency II programme costs by more than 5%.

'Delaying the implementation of the final rules has come at a price for insurers and one in three respondents is concerned about the additional costs of delays,' Mr Lester said.

'The smallest insurers have suffered the biggest dents in their original budgets while non-life insurers have incurred bigger hits than their life company counterparts.'

More than a third (35%) of insurers also said they had concerns about how delays to Solvency II implementation would impact on their ability to integrate the new regime into their day-to-day operations. This was a particular concern for the smallest insurers surveyed (47%) and non-life companies (44%).

Mr Lester said: 'Insurers' concerns about transition into "business as usual" are likely to stem from the practical challenges of maintaining business engagement and willingness  to absorb into business as usual when there is continuing delay and uncertainty surrounding the precise regulatory requirements.'

This article appeared in our May 2012 issue of The Actuary.
Click here to view this issue
Filed in
05
Topics
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ