Solvency II delays are ‘self-defeating’, says Eiopa

Any further delays to Solvency II will only make it more difficult to eventually implement, the European Insurance and Occupational Pensions Authority has claimed.

In an open letter to Michel Barnier, the European commissioner for internal market and services at the European Commission, Eiopa chairman Gabriel Bernardino argues that individual governments will instead form national-level solutions to maintain the momentum of Solvency II preparation.

He said this would be contrary to the development of a single universal rule book, and will make it more difficult to unite Europe under a single standard of practise, which he says is “at the heart” of Solvency II.

Mr Bernardino said: “Considering the improvements Solvency II will bring to the understanding and management of risk, it is difficult in light of the global crisis to defend any further delay in its implementation.”

Mr Bernardino also argued that because Solvency II is held internationally as a reference framework for insurance risk-based supervision, additional delays or uncertainties in its implementation “could be harmful towards the position of the EU in the international discussions.”