Under the final rules implementing the Solvency II directive, the Prudential Regulation Authority (PRA) has simplified matters in two areas.
Paul Fisher, executive director at the PRA, said reporting templates have been amended to improve clarity and calculations on technical provisions have also been made simpler.
Speaking in a webcast published by the Association of British Insurers (ABI), Fisher said: "What we have done is to use our discretion is to try to make things simpler where we can. We've done it in a couple of places, particularly around simplifying some of the reporting templates, which the firms have found a little complicated.
"Also, we've managed to simplify some of the calculation of transitions. The Treasury helped us to set out the directions, which I think the firms will find beneficial."
Fisher mentioned three key implementation dates firms needed to be aware of: 1 April 2015, when the PRA starts to receive formal applications including those for internal models, matching adjustments and volatility adjustment; 1 July 2015, when larger firms are expected to submit their first set of regulatory reporting (May 2016 for smaller firms); and 1 January 2016, the implementation of the Solvency II directive.
In response to a comment on firms thinking of Solvency II as "overly expensive", Fisher said the PRA would try to make processes as simple as possible, including processes for applications.
He said: "For example, we know some firms want to be able to make applications for matching adjustment and volatility adjustment simultaneously, so they know joint results, so we will set our processes so they get a joint consideration in a single response."
Fisher said the final implementation of the directive would "represent a historic moment for European insurers". He urged firms to "maintain the current momentum for the final few months before Solvency II goes live" in order to ensure a smooth and successful transition.
ABI director general, Huw Evans, said: "This is a critical period to get the implementation of Solvency II right. We all need to work closely together over the coming months to ensure the road to implementation is as smooth as possible so insurers can continue to serve their customers and meet their regulatory obligations."
Solvency II is a legislative programme designed to harmonise insurance regulation across EU. Earlier this month, the PRA published its final rules on Solvency II.
