Solvency II deadline is less than 3 years away

Story by: Joy Dunbar Magazine: FinancialAdviser Published Thursday , November 05, 2009

European insurance groups have less than three years to complete their preparations for Solvency II, according to Naren Persad of Towers Perrin.

Mr Persad, senior consultant at the firm, said a key milestone had been passed in the last week.
Solvency II represents a major overhaul of the regulatory framework for insurance firms that operate in the European Union. The proposals are a number one priority for insurance companies over the next few years, according to Mr Persad.

He said many insurers "are already in the process of mapping out the steps they will be taking" to prepare for Solvency II ahead of the deadline on 31 October 2012.

"Earlier this year the high level principles were agreed and since then we have seen more than 1500 pages of consultation on the details of the new framework with more to come later this year. The information in these consultation papers needs to be factored in planning for the next three years."

Mr Persad said many companies will face challenges in locking in the required skilled risk management and actuarial resources.

Last week Philip Scott, chairman of the Chief Financial Officers Forum, urged for liquidity premiums to be included when insurance companies publish their reports.

http://www.ftadviser.com/FinancialAdviser/Regulation/Regulators/News/article/20091105/39215af4-c56f-11de-b1d4-00144f2af8e8/Solvency-II-deadline-is-less-than-3-years-away.jsp