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
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • January 2013
01

Impact study 'could spell further delays for Solvency II'

Open-access content 29th January 2013

Efforts to finalise new rules for Europe’s insurance industry could be delayed further by the launch of a study assessing the impact they will have on long-term guarantees. KPMG has warned.

2

The European Insurance and Occupational Pensions Authority launched an impact assessment yesterday to explore how Solvency II might affect the long-term products and protection generally offered by life insurance companies.

The progress of the legislation underpinning Solvency II, the Omnibus II Directive, has already been delayed to allow the study to be carried out, and KPMG's insurance director, Janine Hawes, said finalising the LTG study could further hinder the process. A key European Parliament vote on Omnibus II is currently scheduled for June 10.

'The European Parliament plenary vote on Omnibus II was pushed back to accommodate this study and is currently scheduled for 10 June,' Hawes explained.

'However, it seems unrealistic to assume that a mutually acceptable solution to the long-term guarantees issues, as well as all remaining outstanding differences on Omnibus II, will be fully resolved in the trilogue process before that date.

'We are expecting that this vote will be further delayed until after the summer recess, with a second "quick fix" directive required to amend the implementation date.'

Solvency II had been scheduled to take effect in January 2014, but it is understood a date of January 2016 or later is now more likely.

The consultancy also echoed concerns raised by Deloitte last week over the extra burden that participating in the impact study would create for insurers.

'The late release of the full requirements has limited the amount of preparation that firms have been able to do in advance of today's launch, so detailed planning now is likely to be the key to successfully completing both the study and the year-end accounts,' Hawes said.

'Completing all scenarios to the level required will require significant dedicated resources.  Where firms have only limited resources available to support the work, they will need to determine how best to meet the requirements of the study. In some instances, they may decide to employ external resources to assist them, either directly in the study or to backfill other roles. Others may decide to adopt simplifications or perhaps not to cover every scenario required.'

Hawes stressed that, for Solvency II to be viable for insurers, the impact study must be representative of the market, and firms must ensure they include as much detail as possible in their responses. 'EIOPA will need as much information as possible to enable it to suggest a way forward,' she added.

This article appeared in our January 2013 issue of The Actuary.
Click here to view this issue
Filed in:
01
Topics:
General Insurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Actuarial Analyst, Reserving

London (Central)
Up to £75,000
Reference
118759

Actuarial Analyst, Reserving

London (Central)
Up to £40,000
Reference
118758

Student Pricing Actuary

London (Central)
£45,000 - £55,000
Reference
118764
See all jobs »
 
 

Most-Popular

 
 
 

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
​
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

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200