The European Insurance and Occupational Pensions Authority today published the timeline for the delivery of Solvency II.
31 JANUARY 2014 | BY JUDITH UGWUMADU
It's Implementing technical standards aims to ensure uniform application between insurers and regulators of the Solvency II risk-based supervisory system so firms are ready from the first day of the directive's application on January 1 2016.
EIOPA said: '[We and the Committee of European Insurance and Occupational Pensions Supervisors] have been advising the European Commission on the project in its various stages of development since 2004.
'The project remains one of EIOPA's major work streams. The Omnibus II Directive sets the scope of the technical standards to be drafted by EIOPA to support the implementation of the new regime.
'It is of high importance to ensure a timely and proportionate application of Solvency II.'
Julian Adams, executive director of insurance at the Bank of England's Prudential Regulation Authority told The Actuary: 'We are pleased to see the updated timeline for Solvency II. It highlights the progress made and the steps we need to take to be ready for Solvency II to be in force in January 2016.
'However, it is important to recognise that there remains a lot of important work to do in developing the Implementing Technical Standards and Guidelines as these will set out how the directive will work in practice. We are working with EIOPA to help make sure that the tight timetable can be met.'
Janine Hawes, insurance director in the UK Solvency II team at KPMG, said it was 'really good' that EIOPA were looking at two sets of implementing technical standards rather than three as initially proposed. Omnibus II's three deadlines of April 31, June 30 and September 31 would have been extremely late, she told The Actuary.
'[The new timeline] is moving us forward at a sensible pace, and I also think it's right that they are prioritising the elements of the regime that deal with the application processes.'
Last year, EIOPA published its final guidance on how the insurance sector should prepare for the implementation of the Solvency II Directive which permitted a gradual and proportionate approach of 'phasing in'.