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
  • January 2013
01

Impact study 'could spell further delays for Solvency II'

Open-access content Tuesday 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

You may also be interested in...

2

EIOPA launches long-term guarantee exercise for Solvency II

The European Insurance and Occupational Pensions Authority has begun testing how Solvency II could impact on products with long-term guarantees offered by both life and non-life insurers.
Monday 28th January 2013
Open-access content

Solvency II long-term guarantee plans 'could hit annuities hard'

An impact study on how annuities are treated under Solvency II could lead to pension payouts being reduced by up to 20%, Deloitte claimed today.
Friday 25th January 2013
Open-access content

Buyout rush 'means pension schemes need a back-up plan'

A potential surge in demand for pension buyouts could create a bottleneck in deals that makes it ‘imperative’ schemes develop a contingency plan, Aon Hewitt said today.
Tuesday 29th January 2013
Open-access content

Low growth and interest rates weigh heavy on life sector, says Moody's

Low interest rates and slow economic growth will make 2013 a difficult year for the global life insurance sector, Moody’s said today.
Monday 28th January 2013
Open-access content
2

Ship losses increase to 106 in 2012

The number of ships lost at sea increased last year, with human error the root cause of most incidents, Allianz said today.
Tuesday 8th January 2013
Open-access content
2

Eurozone insurers' profits 'have fallen 12% in two years'

Eurozone insurers’ profits are expected to begin a slow recovery this year but will still be less than half their 2007 peak by 2016, Ernst & Young said today.
Monday 7th January 2013
Open-access content

Latest from General Insurance

td

Brain power

The latest microchips mimic cerebral function. Smaller, faster and more efficient than their predecessors, they have the potential to save lives and help insurers, argues Amarnath Suggu
Wednesday 1st March 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content
il

When 'human' isn't female

It was only last year that the first anatomically correct female crash test dummy was created. With so much data still based on the male perspective, are we truly meeting all consumer needs? Adél Drew discusses her thoughts, based on the book Invisible Women by Caroline Criado Perez
Wednesday 1st February 2023
Open-access content

Latest from January 2013

Cash coins notes

City watchdog launches annuity market probe

The Financial Services Authority has begun investigating whether retirees are getting a fair deal when they use their pension pot to purchase an annuity.
Thursday 31st January 2013
Open-access content
ta filler

Audit committees have 'significant concerns' over risk, says KPMG

Nearly half of company audit committee members believe their employer's risk management programme needs substantial work, according to research published by KPMG yesterday.
Wednesday 30th January 2013
Open-access content
ta filler

Severe weather claims 'set to push up home insurance premiums'

Home insurance premiums remained largely unchanged in the last three months of 2012 but a flurry of claims related to recent severe weather will push up the cost of cover in the early part of this year, according to the AA.
Wednesday 30th January 2013
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 01

Cash coins notes

City watchdog launches annuity market probe

The Financial Services Authority has begun investigating whether retirees are getting a fair deal when they use their pension pot to purchase an annuity.
Thursday 31st January 2013
Open-access content
ta filler

Audit committees have 'significant concerns' over risk, says KPMG

Nearly half of company audit committee members believe their employer's risk management programme needs substantial work, according to research published by KPMG yesterday.
Wednesday 30th January 2013
Open-access content
ta filler

Severe weather claims 'set to push up home insurance premiums'

Home insurance premiums remained largely unchanged in the last three months of 2012 but a flurry of claims related to recent severe weather will push up the cost of cover in the early part of this year, according to the AA.
Wednesday 30th January 2013
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Manager - Building new team!

London (Central)
Up to £130k + Bonus
Reference
148845

Shape the Future of Credit Risk Model Development

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148843

Longevity Director

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148842
See all jobs »
 
 
 
 

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