The European Parliament today confirmed that Solvency II will take effect on January 1 2016 following a vote yesterday in Strasbourg.
After the vote, Michel Barnier, European Union commissioner for internal markets and services, said in a tweet that the date was definitive and that 'no more changes' would be made.
But he urged insurers to 'be ready' as preparatory work would continue in 2014 and 2015.
Asesh Sarkar, insurance expert at PA Consulting Group, warned that, despite this agreement between European policymakers, potential hurdles remained - 'not least the opening up on policy comprises in the Level 2 negotiations', he said.
'The spotlight will now turn from European policy makers, to national supervisory authorities and insurers, and the question is can they be ready in time?' Sarkar said.
'Before it is too late, insurers must re-evaluate the impact Solvency II will have on their business, what they must do in response and how they deliver the changes to ensure value for money. If they can do this, there is good reason to be optimistic about a 2016 implementation.'
Last week, EU politicians reached an agreement on Solvency II rules.