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
  • August 2013
08

Further Solvency II delays now possible, KPMG warns

Open-access content Wednesday 4th September 2013 — updated 5.13pm, Wednesday 29th April 2020

KPMG has warned that the implementation of Solvency II is likely to be further delayed after a key European Parliament session to approve proposed amendments to the regulations was put back until next year.

2
The European Parliament will not now meet to consider the proposed amendments, known as Omnibus 2, until March 11 next year, according to parliamentary schedules released today.

Responding to the announcement, KPMG said that this meant there was 'no clarity' about when the regulations, which will place new capital requirements on insurers based on the results of risk-based assessments of their assets and liabilities, will be introduced. Previous speculation around the implementation date was predicated on Omnibus 2 being finalised this year. Now it has been formally recognised that this will be missed, the further risk of a significant delay increases greatly, KPMG's European head of Solvency II Peter Ott said.

'Today's announcement indicates that the trilogue process to agree the proposed amendments to Solvency II is taking longer than had been hoped.  'It needs to be recognised that there will be no single universally accepted solution to the long-term guarantee issue and political compromise must be reached quickly if Solvency II is ever to be finalised.'

Janine Hawes, insurance director at KPMG in the UK, added that the Guidelines on Preparing for Solvency II, issued by the European Insurance and Occupational Pensions Authority in draft in March, had effectively become a 'soft launch' of Solvency II.

She added that there was now a need to delay the 'switch-off' of existing regulations, which is scheduled to happen on January 1 next year.

The announcement of the delay to the European Parliament session comes on the same day that a survey by Towers Watson revealed UK life insurers had used delays to Solvency II to make improvements to how they assess and measure risk in their own models.

In its annual study of risk calibration methodologies, covering 21 of the UK's life insurers that employ internal models, the consultancy found that most companies rated their risk validation as 'final' or 'almost final'.

This is in contrast to the result of last year's poll, which indicated firms had used the time ahead of the new European regulations to refine their own schemes.

Although many firms have reduced their work on Solvency II projects for the time being, Towers Watson said it still loomed large in their thoughts.

Global head of life capital modelling John Rowland said: 'After a period of months where it has sometimes seemed as if Solvency II has slipped off the agenda, we expect to see a refocusing of resources as internal model approval processes start.

'Despite benefiting from the hiatus, some key areas of model validation remain to be resolved in many life companies.'

This article appeared in our August 2013 issue of The Actuary.
Click here to view this issue
Filed in
08
Topics
General Insurance

You might also like...

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

Latest Jobs

Catastrophe Modelling Analyst - London Market Broker

London, England
£40000 - £50000 per annum
Reference
145925

Senior Catastrophe Analyst

England, London
£65000 - £75000 per annum
Reference
145924

Life Actuary - Financial Reporting - Day Rate contract

Negotiable
Reference
145923
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