Solvency II is the new solvency regime for all EU insurers and reinsurers, which also covers the insurance operation of bancassurers.
Solvency II aims to implement solvency requirements that better reflect the risks companies face and deliver a supervisory system that is consistent across all EU member states. Insurance-related companies in Ireland need to prepare now for this new solvency regime.
Latest Solvency II updates in the Irish Insurance market.
The Central Bank of Ireland released their Solvency II newsletter on January 31, 2013. This newsletter indicated the Solvency II implementation date of January 1, 2014 will not be met. As suspected, the implementation delay is primarily due to delays in agreeing the Omnibus 2 directive and in particular provisions covering products providing long-term guarantees. The Central Bank of Ireland is working closely with EIOPA to achieve a consistent and convergent approach across the EU to Solvency II implementation.
The Central Bank refers to the recent EIOPA opinion that elements of Solvency II, primarily, but not limited to, Pillar 2 should be introduced by January 1, 2014. Further details of guidelines on interim measures will be provided by EIOPA later in the year. For more details on the timetable for the guidelines please refer to the CBI newsletter in the link below. A link to the EIOPA opinion is also provided.
Sergio Balbinot has warned of severe consequences for policyholders and Europe's economy if the new Solvency II regulatory regime for European insurers does not fully recognise that insurance is a long-term business. "Elements that appear to be technical details can in fact have an enormous impact," Balbinot told the EIOPA Conference in Frankfurt.
Some elements of Solvency II could be introduced between now and the new likely start date of the regulatory regime in 2016, Gabriel Bernardino, chairman of the European Insurance and Occupational Pensions Authority (EIOPA), has said.
Speaking at EIOPA's second annual conference in Frankfurt, Bernardino reiterated that EIOPA believed a credible timetable will "probably point out to an implementation date not earlier than 2016".
|Latest Solvency II news|
|20 September||Insurance Europe: Impact assessment results should be reflected in Omnibus II|
|19 September||EU may delay tough new capital rules for insurers|
|18 July||Deloitte warns annuity rates could fall 20%|
|15 July||Interview with Gabriel Bernardino, EIOPA Chairman|
|11 July||EIOPA fires starting pistol on QRTs More|
|15 June||South Africa, Israel, China and others keen on transitional equivalence More|
|15 May||Insurance Europe Position Paper on the Solvency II reporting package More|
|15 May||Speech by Julian Adams regarding Solvency II and the London Market More|
|11 May||Speech by Gabriel Bernardino Chairman of EIOPA – EIOPA, Solvency II and the Loss Adjusting profession More|
|30 April||Solvency II and securitisation: significant negative impact on European Market, according to Fitch Ratings special report. More|
|19 April||The new approach to insurance regulation and the implementation of Solvency II, speech by Julian Adams Director of Insurance Supervision More|
|5 April||Full Omnibus II vote delayed to September. More|
|8 March||Time to put aside differences [regarding Omnibus II], says Karel Van Hulle More|
|8 March||Is there a "third way" on Solvency II for pensions? More|
|10 February||EIOPA aligns Solvency II XBRL taxonomy with European Banking Authority More|
|10 February||Bernardino: “Omnibus II delay harms EU credibility” More|
|16 January||UK regulator holds firm on 2014 Solvency II start date More|
|10 January||Deloitte report: Solvency II the volatility challenge More|
|3 January||Solvency II and IORP directives need to be aligned, according to the CEA, the European insurance and reinsurance federation More|
|1 January||Solvency II deadline pushed back More|