Solvency II deadline a problem for insurers

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Solvency II deadline a problem for insurers

European insurers are cutting it fine to meet the January deadline for Solvency II implementation, research by financial information provider Interactive Data has claimed.

The most significant problem identified in the research was the challenge of reporting and ensuring robust data and information technology.

Interactive Data held more than 150 Solvency II meetings with insurers and asset managers during the past 18 months. It found that approximately one-fifth – 20 per cent – of European insurers were not confident of meeting the January 2016 deadline for implementation of the directive.

Claudio Salinardi, managing director of pricing and reference data Europe, the Middle East and Africa for Interactive Data, said: “Insurers in the Netherlands, the UK and Nordic countries are more confident of meeting the requirements, while French, German, Greek and Eastern European insurers are less optimistic.”

Jon de Beer, head of prudential regulation for the ABI, said: “Insurers in the UK are working closely with the regulators to ensure a smooth transition to Solvency II in January 2016 and are confident about meeting the necessary requirements.

“However, we do recognise that such a complex raft of new regulation may take time to be fully implemented Europe-wide.”

Adviser view

Alan Solomons, director of London-based Alpha Investments & Financial Planning, said: “We need to know if any of the insurers who are thought to be having a problem with the Solvency II deadline are operating here.

“But, of course, most IFAs will only use UK-based companies. However, if any of these companies do trade here and they fail to meet the criteria, it is important that we should know this.”